Amidst the rising crude oil prices due to the West Asia conflict, the Modi government has delivered a major sigh of relief to the citizens. Ahead of the high-profile virtual meeting with State Chief Ministers today, the Central Government has decided to slash petrol and diesel prices. According to top sources, the Centre is likely to reduce Excise Duty, leading to a price drop of ₹5 to ₹7 per liter.

Prime Minister Narendra Modi emphasized that the government is committed to shielding Indian consumers from the volatility of the global market. Despite crude oil crossing $90 per barrel, the Ministry of Petroleum has worked out a strategy with Oil Marketing Companies (OMCs) to maintain stable retail prices through government subsidies.

During today’s video conference, the PM is expected to urge all Chief Ministers to reduce State VAT (Value Added Tax) to provide double benefits to the public. Several BJP-ruled states have already signaled their readiness to follow suit. This move is being seen as a strategic intervention by the government ahead of the 2026 Assembly elections.

The reduction in fuel prices is expected to trigger a cooling effect on inflation. Cheaper petrol and diesel will directly lower transportation costs, eventually making essential goods like vegetables and groceries more affordable. The new price regime is likely to come into effect from midnight tonight or early tomorrow morning.