Price cuts by Rs10 to Rs14 per litre on petroleum are good news as well as representative of a balanced fiscal approach being adopted by the government to shield the citizens from bearing a direct impact of economic constraints. The new petroleum prices reflect a fall in the international market. This gives the policymakers a good chance to periodically see how, when, and to what extent, price relief can be given. Though an overall challenging time for the country economically, the fortnight revision of petroleum prices has turned out to be a strategic approach where in accordance with exchange rate fluctuations and the international market, the gains are translated into price cuts of petroleum products. Additionally, the government’s adherence to the maximum permissible limit of Rs60 per litre for petroleum levy demonstrates a responsible fiscal approach.
