Petrol, Diesel Prices: Will Fuel Prices Come Down Soon? All Eyes On Budget 2025! Check Latest Rates

Petrol, Diesel Prices: One of the biggest desires of the oil and gas industry is bringing petroleum products under the popular one-tax regime, GST. However, the chances of this happening are bleak. But a new hope has emerged with government officials indicating that prices of petrol and diesel could come down, however, fuel products will not be included in GST at least not anytime soon.

In India, the gap between petrol and diesel is minimal. Petrol is even higher than Rs 100 in metro cities like Kolkata and Mumbai. Diesel is expensive in cities like Kolkata, Mumbai, Chennai, Patna, and Jaipur with prices above Rs 90 per litre.

Why do Petrol and diesel Prices Go Down?

Recently, in a podcast, Union Petroleum Minister Hardeep Singh Puri shunned the option of petroleum products under the GST framework. Explaining the reason, he said, that if fuel products are brought under GST, it will impact state revenues and also take a toll on the fluid economic situation. However, he did not rule out the possibility of bringing fuel prices down.

He further said in the podcast that if crude oil prices ranged between $72-$73 per barrel, or further come down, there's a scope for lowering fuel prices.

The crude oil prices are expected to range between $70-80 per barrel by the end of FY25, as per ICRA.

In 2024, crude oil prices declined by at least 3%, which is the second consecutive annual decline, owing to stalling of post-pandemic recovery.

Notably, Goldman Sachs Research forecasts Brent crude oil to trade in a range of $70-85 per barrel, with an average price of $77 in the fourth quarter of FY25 and $76 in 2025, assuming there's not a major supply disruption.

Currently, Brent Crude rose to $75 per barrel, which is the first session after the New Year Holiday. Earlier, Brent was at $72 per barrel.

Rahul Kalantri, VP Commodities, Mehta Equities highlighted that API data showed that US crude stocks fell by 1.4 million barrels in the week ending December 27th. Investors are also anticipating a recovery in China's economy and fuel demand following President Xi Jinping's pledge to implement more proactive policies to spur growth. This follows an official survey indicating that policy stimulus is reaching some sectors of the world's largest crude importer. Meanwhile, markets are concerned about a potential oversupply this year and the impact of Donald Trump's second presidential term on oil policy.

Could Budget 2025 Be The Much Needed Blessing For Vehicle Owners?

At the latest, the Confederation of Indian Industry (CII) has made several recommendations for the Union Budget 2025-26. Among them, it suggested reducing excise duty on fuel to boost consumption and control inflation. The proposal aims to increase disposable income, especially to benefit the lower-income class, which is greatly affected by fuel prices. It has also suggested a slight reduction in income tax rates.

CII Director General Chandrajit Banerjee focused on the importance of domestic consumption for India's economic growth. He said that inflation has reduced the purchasing power of consumers. In such a situation, government intervention can focus on increasing disposable income and encouraging spending to maintain economic pace.

Hence, it will be keenly watched whether Finance Minister Nirmala Sitharaman would declare any revision in excise duty for petroleum products in the upcoming Budget 2025 which will be presented on February 1, 2025.

Check Latest Prices Of Petrol, Diesel In India:

Petrol Prices In India:

Petrol prices in India are influenced by a combination of international crude oil prices, domestic tax structures, and currency exchange rates. As of the latest data, the price of petrol in India has been observed to be significantly higher than in some of its neighboring countries.

Petrol Prices In India As of January 2, 2025	(Rs Per Litre)
New Delhi	94.77
Kolkata	105.01
Mumbai	103.5
Chennai	100.8
Bangalore	102.92
Hyderabad	107.46
Chandigarh	94.3
Jaipur	104.72
Patna	105.6
Thiruvananthapuram	107.48

Diesel Prices In India:

Diesel Prices In India As of January 2, 2025	(Rs Per Litre)
New Delhi	87.67
Kolkata	91.82
Mumbai	90.03
Chennai	92.39
Bangalore	88.99
Hyderabad	95.7
Chandigarh	82.45
Jaipur	90.21
Patna	92.43
Thiruvananthapuram	96.38

Currently, petrol prices are higher than diesel prices. Diesel fuel plays a significant role in the logistics sector of India since almost all heavy-duty vehicles run on it across the country. About 81% of the total consumption of diesel in India is through the goods transport and supply-chain logistic sector.