Petrol Diesel Price: With the beginning of the new year 2025, a big decline has been seen in the prices of petrol and diesel. This news is a relief to the general public, because fuel prices were continuously increasing for the last few months. Oil companies have implemented new prices of petrol and diesel from January 12, 2025, in which petrol has been reduced by about Rs 2 per liter and diesel by Rs 1.5 per liter.
The effect of this price cut will be visible all over India. However, fuel prices may vary slightly due to local taxes and duties applicable in different states. Let us know in detail about this price fall and see what it means for the common man.
Petrol-Diesel Price Cut: At a glance
| Description | Information |
| effective date | 12 January 2025 |
| cut in petrol | About Rs 2 per liter |
| cut diesel | About Rs 1.5 per liter |
| affected area | whole india |
| last price change | March 2024 |
| current crude oil price | $80 per barrel (estimated) |
| main reason | Fall in crude oil prices in international market |
| beneficiary | General public, transport sector, industry |
New rates of petrol and diesel in major cities
According to the new prices, the prices of petrol and diesel in major cities of the country are as follows:
- 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 90.32/litre
- Chennai: Petrol – Rs 99.03/litre, Diesel – Rs 91.11/litre
- Patna: Petrol – Rs 103.41/litre, Diesel – Rs 90.76/litre
Note that these rates are typical and may vary slightly due to local taxes.
Effect of Fuel Price Cut
This price cut will have a wide-ranging impact:
- Less burden on the common man’s pocket: Lower fuel prices will reduce people’s daily travel expenses.
- Control on inflation: Due to reduced transportation costs, prices of goods are also expected to come down.
- Relief to industries: Manufacturing and logistics sectors will benefit, which may reduce production costs.
- Increase in economic activities: Cheap fuel can boost economic activities.
- Promotion of travel and tourism: Lower fuel costs allow people to travel more, which will benefit the tourism sector.
How are the prices of petrol and diesel decided?
Petrol and diesel prices depend on several factors:
- International crude oil prices: This is the most important factor.
- Exchange rate of rupee: Also affects the value of rupee against dollar.
- Taxes of Central and State Governments: Taxes like excise duty and VAT increase the prices.
- Dealer Commission: Margin of petrol pump owners is also included.
- Transportation Cost: Cost of transportation from oil depot to petrol pump.
Petrol-Diesel Price Break-up
The breakdown of the price of one liter petrol or diesel is as follows:
- Base Price: 48%
- Excise duty: 35%
- VAT: 15%
- Dealer Commission: 2%
due to falling prices
Some of the major reasons behind this price cut are:
- Fall in crude oil prices in international market
- rupee strengthening
- tax cut by government
- improvement in global economic situation
State wise impact of Fuel Price Cut
Fuel prices will be affected differently in different states:
- Maharashtra: Maximum benefit in Mumbai, reduction of about Rs 2.5 per liter
- Delhi: Direct benefit due to being a union territory
- Uttar Pradesh and Bihar: Moderate profit, reduction of Rs 1.5-2 per liter
- Rajasthan and Madhya Pradesh: Relatively low profit, reduction of Rs 1-1.5 per liter
Effect of Petrol-Diesel Price Cut on the Economy
This price cut could have several positive effects:
- Reduction in inflation: Lower transportation costs may reduce prices of goods.
- Increase in consumer spending: People will have more disposable income.
- Reduction in costs of industries: Manufacturing and service sectors will benefit.
- Improve export competitiveness: Indian products can become more competitive in the international market.
- Employment Generation: Increase in economic activities can create new employment opportunities.
Fuel Efficiency Tips: How to save petrol and diesel
Despite the reduction in prices, fuel savings are significant. Some useful tips:
- Perform regular vehicle maintenance
- Maintain correct tire pressure
- Drive smooth, avoid sudden braking and acceleration
- Use air conditioner wisely
- Do not carry heavy items
- Use carpooling or public transportation
Future Outlook: What to expect next?
Some predictions about future fuel price trends:
- Volatility will continue: Prices may continue to fluctuate due to global factors.
- Impact of renewable energy: The increasing trend of electric vehicles may affect the demand for petrol and diesel.
- Government Policies: Changes in tax structure may affect prices.
- Technological advances: Improvements in fuel efficiency can reduce consumption.
- Geopolitical Factors: International relations and conflicts can affect prices.
Conclusion: Is this price cut sustainable?
This price cut is certainly a positive step, but its long-term sustainability may be in question. There are several factors that may affect prices in the future:
- state of the global economy
- Policies of oil producing countries
- India’s economic policies and tax structure
- Environmental regulations and commitments to climate change
Therefore, while the current price cut provides relief, consumers and businesses should be prepared for fluctuations in fuel prices in the long term.
Disclaimer
This article is for informational purposes only. Petrol and diesel prices can change on a daily basis and vary across locations. Please contact your local petrol pump or official government sources for accurate and updated information. The author or publisher is not responsible for any errors or omissions.
