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After the reduction in LPG prices, now people are waiting for the reduction in petrol-diesel prices. According to local brokerage firm JM Financial, the government may announce a cut in petrol and diesel prices by Rs 3 to 5 per liter around Diwali. This year assembly elections of 5 states will be held in November or December. In such a situation, people are expecting a big relief from the government.
Excise duty will be reduced
According to the brokerage firm, if the public was relieved. Hence the excise duty or VAT will be reduced. However, this decision is not so easy for the government. Russia and Saudi Arabia will continue to cut oil production until the end of the year. Due to this, crude oil has reached a 10-month high.
LPG cylinders will become cheaper
Last week, the government announced a reduction of Rs 200 in the price of a 14.2 kg LPG cylinder. The government has taken this decision at a time when the retail inflation rate has increased sharply. After this decision, it was hoped that the price of petrol and diesel would be reduced by the central government.
How much are Saudi and Russia cutting?
Saudi Arabia is currently cutting 1 million barrels per day and Russia 300,000 barrels. The decision was extended till December 2023. Due to this decision of these oil producing countries, the price of crude oil is expected to increase.