Petrol, Diesel Prices On February 1: Will FM Cut Excise Duty On Fuel Products? Check Latest Rates

Petrol, Diesel Prices: Fuel prices in India will be in focus as citizens seek reforms that could cheaper the prices of petrol and diesel. Ahead of the Budget 2025, currently, cities like Chennai, Mumbai, Bangalore, and Hyderabad among others sell 1 litre of petrol at more than Rs 100. In some cities, diesel prices have shot over the Rs 90 per litre mark. The majority of predictions are that the government could trim excise duty on crude oil to cool down fuel prices.

Check Out the Latest Petrol and Diesel Prices:

Petrol Prices From February 1:

New Delhi: Rs 94.77 per litre

Kolkata: Rs 105.01 per litre

Mumbai: Rs 103.50 per litre

Chennai: Rs 100.80 per litre.

Bangalore: Rs 102.92 per lire

Hyderabad: Rs 107.46 per litre

Jaipur: Rs 104.72 per litre

Diesel Prices From February 1:

New Delhi: Rs 87.67 per litre

Kolkata: Rs 91.82 per litre

Mumbai: Rs 90.03 per litre

Chennai: Rs 92.39 per litre

Bangalore: Rs 88.99 per litre

Hyderabad: Rs 95.70 per litre

Jaipur: Rs 90.21 per litre

One of the major key indicators to determine petrol and diesel prices are the performance of crude oil, the central government's excise duty and VAT rates which vary from state to state.

Crude Oil Prices:

Currently, Brent Crude oil futures rose toward $76 per barrel on Friday, extending gains from the previous session, as traders awaited further clarity on President Trump's looming tariff deadline. Trump reaffirmed plans to impose 25% tariffs on Canada and Mexico starting Saturday but indicated he was still considering whether to exempt oil from the levies, as per Trading Economics data.

Further, the data added, that Canada and Mexico are the two largest crude exporters to the US. Meanwhile, investors are also looking ahead to the OPEC+ meeting scheduled for February 3, as Trump pressures the group, particularly Saudi Arabia, to lower oil prices. Traders expect OPEC+ to maintain its current supply policy, with additional supply increases only starting in April. For the month, oil is on track for a second consecutive monthly gain, driven by early reports of US sanctions on Russia and cold weather in the US.

Budget 2025 Expectations For Oil & Gas:

According to Phillip Capital, government had revoked SAED, when crude slipped below US$ 75/bbl in 3QFY24. With crude trending close to US$ 80/bbl, there is a likelihood that SAED may be re-imposed.

Further, Dr. Kapil Garg, Managing Director, Asian Energy Services said, The oil and gas sector has experienced considerable momentum in recent months, and sustaining this growth hinges on focused policymaking in the Union Budget 2025. First and foremost would be the passage of the Oilfield (Regulation and Development) Amendment Bill in the Lok Sabha, which can mark a turning point for the industry. The proposed changes will expedite approvals, simplify arbitration processes, and particularly benefit unconventional hydrocarbons like shale and coalbed methane, improving not only investments but also enhance resource utilization."

Garg added, "Collaboration between public and private players must also be a priority. Initiatives like OLAP, DSF, and PEC have demonstrated the benefits of partnership in unlocking India's hydrocarbon reserves. Expanding these frameworks and incentivizing private participation will further boost domestic production and reduce import dependency. The recent collaboration between ONGC and BP in Mumbai High can serve as a blueprint for public-private synergies for technological innovation and enhanced production outputs going ahead."

Furthermore, Garg highlighted that Another important aspect to consider is the need to rationalize gas pricing formulas to minimize price distortions faced by producers and consumers under the existing multi-pricing mechanisms. By adopting a more streamlined formula that aligns with previous frameworks linking gas prices to crude oil benchmarks, India can enhance accessibility to cleaner fuel. These moves would be even more effective if implemented alongside the long-pending inclusion of oil and gas in GST, particularly natural gas. Its implementation would simplify taxation, improve the fuel's competitiveness, and foster greater adoption of natural gas as a cleaner energy source, in line with India's energy transition goals. The industry would also benefit from capital allocations for expanding midstream infrastructure, including pipelines and gas terminals. India's current pipeline network, at approximately 20,000 kilometers, falls short of meeting future demand. Expanding this network and modernizing fuel transport infrastructure are critical to de-bottlenecking supply chains and unlocking production potential in newly explored basins.