Govt may cut petrol, diesel price by Rs 3-5 a litre around Diwali
Last week, the government cut the price of the domestic 14.2kg LPG cylinder by Rs 200 per LPG cylinder.
Last week, the government cut the price of the domestic 14.2kg LPG cylinder by Rs 200 per LPG cylinder.
Last week, the government cut the price of the domestic 14.2kg LPG cylinder by Rs 200 per LPG cylinder.
New Delhi: Following the recent cut in domestic LPG prices, the Central government may cut petrol, and diesel prices by Rs 3-5 a litre around Diwali given that key state elections start from November-December, JM Financial Institutional Securities said in a report.
Last week, the government cut the price of the domestic 14.2kg LPG cylinder by Rs 200/LPG cylinder for all 330 million consumers with the effect from August 30. This was to give relief to the common man from the recent surge in inflation.
As a follow-on action, the government may cut petrol/diesel prices by RS 3 to 5 per litre around Diwali given key state elections in November-December, the report said.
"This cut should mostly happen via the reduction in excise duty and/or VAT given oil marketing companies are losing on the auto-fuel marketing business at the current high crude price," the report said.
"However, we cannot rule out a scenario whereby the government may nudge OMCs to cut petrol/diesel prices as their balance sheets have largely got repaired due to likely strong profits in the first half of FY24," the report added.