Big relief! Petrol and diesel prices reduced, see full list of new prices applicable from January 12 Petrol Diesel Price Drop

After the continuous increase in the prices of petrol and diesel, the general public has finally got relief. The government has announced a reduction in the prices of petrol and diesel. This deduction has come into effect from January 12, 2025. This decision will provide great relief to crores of vehicle owners across the country. Inflation is also expected to be curbed due to reduction in prices of petrol and diesel.

This step will not only reduce the burden on the common man’s pocket, but it is also likely to give a boost to the economy. Reduction in fuel prices will reduce transportation costs, which may also reduce prices of goods and services. In this way, this decision can prove to be a big booster for the country’s economy.

New prices of Petrol-Diesel (Petrol-Diesel New Prices)

The government has reduced the price of petrol by Rs 2 per liter and diesel by Rs 1.50 per liter. This cut has been implemented across the country. However, prices may vary slightly from state to state due to taxes imposed by the states.

Overview of Petrol-Diesel Pricing Scheme

New prices of petrol and diesel in major cities (New Fuel Prices in Major Cities)

Following are the new prices of petrol and diesel in major cities of the country:

• Delhi: Petrol – Rs 92.77/litre, Diesel – Rs 86.17/litre
• Mumbai: Petrol – Rs 101.50/litre, Diesel – Rs 88.53/litre
• Kolkata: Petrol – Rs 103.01/litre, Diesel – Rs 89.32/litre
• Chennai: Petrol – Rs 98.80/litre, Diesel – Rs 90.98/litre
• Bengaluru: Petrol – Rs 100.92/litre, Diesel – Rs 87.49/litre
• Hyderabad: Petrol – Rs 105.46/litre, Diesel – Rs 94.15/litre

Reasons for Price Cut

There are several reasons behind the cut in petrol and diesel prices:

1. Fall in crude oil prices in the international market: Crude oil prices have fallen significantly globally in the last few months. This has had a direct impact on the prices of petrol and diesel in India.
2. Rupee strengthening: The exchange rate of the rupee against the dollar has improved, leading to lower import costs.
3. Tax reduction by the government: The central government has reduced the excise duty, the benefit of which has been passed on to the consumers.
4. Cooperation of state governments: Some state governments have also reduced their share of VAT.
5. Efforts to promote economic activities: The government wants that by reducing fuel prices, economic activities should increase and the growth rate should accelerate.

Impact of Price Cut

The cut in petrol and diesel prices will have a wide-ranging impact:

1. Control on inflation: Reduction in fuel prices will reduce transportation costs, which will reduce prices of goods and services.
2. Increase in people’s savings: There will be less burden on the pockets of vehicle owners, which will increase their savings.
3. Relief to industries: Manufacturing and transportation sectors will get major relief, which will reduce production costs.
4. Boost to economic growth: Lower fuel prices will increase economic activities, which will boost growth rates.
5. Control on inflation: Reduction in fuel prices will curb the inflation rate.

State-wise Petrol-Diesel Prices (State-wise Fuel Prices)

The new prices of petrol and diesel in different states are as follows:

• Uttar Pradesh: Petrol – Rs 92.69/litre, Diesel – Rs 86.31/litre
• Maharashtra: Petrol – Rs 102.27/litre, Diesel – Rs 89.02/litre
• Gujarat: Petrol – Rs 92.44/litre, Diesel – Rs 88.67/litre
• Rajasthan: Petrol – Rs 102.32/litre, Diesel – Rs 89.36/litre
• Madhya Pradesh: Petrol – Rs 105.50/litre, Diesel – Rs 90.39/litre
• Bihar: Petrol – Rs 104.94/litre, Diesel – Rs 90.92/litre

Fuel Price Determination

Determining petrol and diesel prices is a complex process, involving many factors:

1. International crude oil prices: This is the most important factor. Fluctuations in crude oil prices in the global market have a direct impact on the prices of petrol and diesel in India.
2. Exchange Rate: The value of the rupee against the dollar also affects fuel prices.
3. Central Tax: Excise duty imposed by the central government.
4. State Tax: VAT and other taxes levied by state governments.
5. Dealer Commission: Commission paid to petrol pump owners.
6. Transportation cost: The cost of transporting fuel from the refinery to the petrol pump.

Ways to Benefit from Price Cut

Some tips to make the most of fuel price cuts:

1. Use of fuel saving techniques: Use fuel saving techniques while driving.
2. Use of public transport: Use public transport where possible.
3. Car Pooling: Opt for car pooling for office or long journeys.
4. Regular maintenance of the vehicle: Maintain the vehicle regularly so that fuel consumption is reduced.
5. Benefits of digital payment: Some petrol pumps offer additional discounts on digital payment, take advantage of it.

Future Price Predictions

Experts believe that the prices of petrol and diesel may fall further in the next few months. There are a couple of reasons for this:

1. Fear of global recession: Demand for crude oil may reduce due to fear of recession in the global economy.
2. Development of new energy sources: Increasing use of electric vehicles and other alternative fuels may reduce the demand for petrol and diesel.
3. Increase in production: Plans by some countries to increase oil production will increase supply.
4. Indian Government’s stance: The government may try to keep fuel prices low to control inflation.

Disclaimer

This article is for informational purposes only. Although we have tried to provide accurate information, petrol and diesel prices are subject to change depending on market conditions and government policies. Please check your local petrol pump or government websites for the most up-to-date prices. Before relying on the information provided in this article, readers are advised to conduct their own research and analysis.