New Delhi, Sep 25
Petrol and diesel prices may be reduced after October 5, according to CLSA, which has based its report on speculation after comments by Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas, suggesting a cut last month.
The prices have not changed since March 2024. Jain had said that the state-run oil marketing companies (OMCs) may consider reducing petrol and diesel prices if international crude prices stay low for an extended period, as per media reports.
The CLSA in its note said, "Maharashtra is a crucial battleground, and the BJP-led alliance may consider lowering fuel prices as a populist move."
According to several media reports, Maharashtra's state elections are expected in early November. Final dates for the state election are likely announced by mid-October.
CLSA report suggests that along with any retail fuel price cut, the government may also raise excise duty on petrol and diesel. At present, the Centre levies an excise duty of Rs 19.8 and Rs 15.8 per litre on the sale of petrol and diesel.
Current excise duty is 40 per cent and 50 per cent lower compared to the 2021 peak.
According to CLSA, every rupee hike in excise duty on petrol and diesel would lead to an additional Rs 16,500 and Rs 5,600 crore collection annually in government accounts.