The two reductions together had brought down the excise duty on petrol and diesel prices by a total of Rs 13 and Rs 16 per litre, respectively. After the second duty cut, BJP-governed states also implemented matching cuts in VAT to soften the impact of global oil prices.
Technically, fuel retailers are free to decide retail prices of petrol and diesel. But in practice, govt informally casts a long shadow. The recent fall in oil prices had turned petrol and diesel profitable for retailers but they were waiting for a signal. That is how prices have been held steady since the last reduction in 2022 even though fuel had switched between becoming loss-making and profitable proposition for various stretches of time in between.