Fuel price cut of ₹2 per litre takes effect today

Fuel prices will be reduced by ₹2 per litre from 6 am on March 15, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced on Thursday, March 14. Oil marketing companies will bear the cost. 

Industry sources told CNBC-TV18 that there was headroom for the price cuts, which they said have been "calibrated and are prudent". The price cuts — covering CNG, LPG, petrol and diesel — are well distributed between the Centre (Ujwala subsidy), CGD players & OMCs

In a post on X (formerly Twitter), Puri said, "After today's cut, there has been a total reduction of ₹15 in petrol prices and a total reduction of ₹17 in diesel prices (since) November 2022."

The minister said the fuel will boost consumer spending and reduce operating costs for over 58 lakh heavy goods vehicles running on diesel, 60 million cars and 270 million two-wheelers.

"When the world was going through difficult times — petrol prices increased by 50-72% in developed and developing countries, and when in many countries around us petrol was no longer available, prices in India decreased by 4.65% in the last two and a half years," Puri claimed in the post.

According to the minister, reduced petrol and diesel prices will benefit the citizens through:

More disposable income.

Boost for tourism and travel industries.

Control over inflation.

Increased consumer confidence and spending.

Reduced expenses for businesses dependent on transportation.

Enhanced profitability for logistics, manufacturing, and retail sectors.

Reduced outgo for Farmers on tractor operations & pump sets.

India imports more than 80 percent of all the oil it needs. As of 10 pm on Thursday, March 14, West Texas Intermediate Crude was priced at just over $81 a barrel, while Brent Crude was priced at more than $85 a barrel. Around 3 pm, WTI was up 0.43% to $80.06 per barrel, and Brent crude traded 0.40% higher at $84.37 per barrel in New York.

Earlier in the day, PTI reported that crude oil prices climbed ₹59 to ₹6,638 per barrel in futures trade as participants widened their positions following a firm spot demand.