Fuel Prices Drop : In a move that has sparked widespread relief and optimism, the Indian government has announced a major fuel price cut of ₹18 per litre for both petrol and diesel across metropolitan cities, effective June 18.

This marks one of the steepest fuel price reductions in recent years and is expected to bring down household expenses, reduce business operating costs, and stimulate economic activity.

City-Wise Impact:

City	Old Price (₹/Litre)	New Price (₹/Litre)	Price Cut	% Decrease
Delhi	103	85	₹18	17.5%
Mumbai	109	91	₹18	16.5%
Chennai	106	88	₹18	17.0%
Kolkata	104	86	₹18	17.3%
Bengaluru	105	87	₹18	17.1%
Hyderabad	108	90	₹18	16.7%
Pune	107	89	₹18	16.8%
Ahmedabad	102	84	₹18	17.6%

 

Key Benefits:

• Lower transportation costs for both individuals and logistics firms.
• Reduced inflationary pressure, especially in food and goods pricing.
• Boost in consumer spending, especially for middle-class families.
• Business savings in operations, shipping, and fuel-heavy sectors.
• Greater economic confidence and improved public sentiment.

Public and Industry Reaction

Social media users, transport companies, and industry leaders have largely welcomed the move. Consumers expect relief in daily commuting expenses, while businesses anticipate lower logistics and production costs. Transport operators and retailers are considering fare reductions and discount offers due to lower operating expenses.

Economic Outlook:

Experts suggest the fuel cut could:

• Increase GDP growth by stimulating consumer demand.
• Ease inflation, especially in the transport and food sectors.
• Lead to employment growth as businesses expand.
• Cause a temporary dip in government tax revenue, but one that could be offset by higher consumption-driven tax collections in the long term.

Global Comparison:

Compared to neighboring countries, India’s new fuel rates now sit closer to regional norms:

Country	Petrol (₹)	Diesel (₹)	Rank
Bangladesh	₹120	₹110	1
Sri Lanka	₹95	₹85	2
India	₹84–91	₹84–91	3
Pakistan	₹100	₹95	4
Nepal	₹90	₹80	5

What to Watch For:

• Future fuel prices depend on global oil trends and domestic tax policy.
• Continued cuts will require balancing fiscal responsibility and inflation control.
• State governments may introduce additional regional price changes.