There was a decline in petrol and diesel prices by 15 paise per litre and 10-11 paise per litre respectively. This reduction on Tuesday was the 14th straight reduction in the price of petrol where as the price of diesel was lowered for thirteen days since May 29.

At present, petrol and diesel prices are deregulated in the country meaning that the rates are market-determined. The prices of petrol and diesel are reviewed every day by oil marketing companies and resultant changes in their prices come into effect at the fuel stations from 6 am next day onwards. However, it is remarkable that this reduction in the prices of petrol and diesel for two weeks has been seen after sixteen days of consecutive hikes in their prices last month.

However, it needs to be noted that the pace at which the prices of petrol and diesel have declined in last 14 days is much slower than the rate at which fuel prices were going up in previous 16 days when it was touching new high every day. It can be better understand by the figures of prices of petrol which has gone down by Rs 2 a litre since May 30, compared to the increase of Rs 3.8 per litre during May 14-29. Petrol prices hit an all-time high of Rs 78.43 a litre and Rs 69.31 for diesel on May 29. Following these price hikes, the rates are finally now on downward spiral following decline in international oil prices and rupee strengthening against the US dollar.

In the long run, petroleum products would be brought under the GST purview to help check volatility in fuel prices. Union oil minister Dharmendra Pradhan said, “In the long run, petroleum products are bound to be included within the ambit of the GST regime. It is only a matter of time. It will immensely help in containing prices of petrol and diesel.” So, there is definitely some ray of hope existing in the horizon indicating that in future the prices of petrol and diesel will remain stable and not show such unexpected rises as the people of India have witnessed recently.