The recently released Economic Survey for FY24 has highlighted significant declines in global energy prices, coupled with proactive measures by the Central Government, resulting in subdued retail fuel inflation throughout the fiscal year.
According to the survey, the global energy price index saw a notable decrease in FY24, contributing to a favorable environment for domestic fuel pricing. Concurrently, the Central Government implemented strategic reductions in the prices of LPG, petrol, and diesel, aimed at easing the burden on consumers.
Specifically, the Economic Survey pointed out that in August 2023, the price of domestic LPG cylinders was reduced nationwide by Rs 200 per cylinder. This move effectively placed LPG inflation into a deflationary trajectory starting from September 2023 onwards.
Further emphasizing the government’s actions, the survey noted that in March 2024, the Central Government slashed petrol and diesel prices by Rs 2 per litre. Consequently, retail inflation for these essential fuels used in vehicles also shifted into the deflationary zone during March 2024.
The Economic Survey detailed the government’s comprehensive efforts to stabilize and reduce fuel prices, highlighting these measures as pivotal in maintaining low retail fuel inflation rates throughout FY24.
This concerted approach, combining global trends and domestic policy interventions, has been instrumental in mitigating inflationary pressures on essential commodities, aligning with broader economic stability objectives.
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