Petrol and diesel prices are likely to drop because the government has eliminated the windfall tax on domestically produced crude oil, which reduces the overall cost for oil producers.
This tax, known as Special Additional Excise Duty (SAED), was previously set at ₹1,850 per tonne but is now zero. With lower production costs, oil marketing companies (OMCs) are in a better position to consider lowering fuel prices. Additionally, if global crude oil prices remain stable or low for an extended period, OMCs may pass on the savings to consumers, leading to cheaper petrol and diesel.