Reducing the price of petrol by Rs 9.5 per litre and of Diesel by Rs 7 per litre

Printing money, lowering interest rates, and a stimulus package This is one of the secondary causes of inflation.

Inflation is mostly caused by an increase in oil costs. India's action will undoubtedly cut inflation, allowing imports and exports to rebound more quickly than in April and May.

Falling Petrol prices should result in lower transportation and fuel expenditures for businesses. Consumers who will profit from cheaper transportation and gasoline expenses. Lower petrol costs will improve their discretionary income, allowing them to spend more on other items.

Because oil is the most traded commodity and has a considerable impact on global transportation costs, it is expected to induce inflation and accelerate economic development.

Also, depending on the nation, reducing gasoline costs will have different implications. Oil-importing nations (such as Germany, Japan, and India) will profit from reduced oil prices in general, while emerging economies that rely on oil exports (such as Russia and Venezuela) may face a major drop in revenue.

Lower petrol prices assist to lower living costs. Particularly if a household owns a vehicle or utilises other petrol-dependent modes of transportation. Because of decreasing transportation costs, all items should become cheaper to a lesser extent.

If real income growth is modest, as it has been in recent years, this decrease in the cost of living is extremely crucial. Oil price declines are practically free tax cuts. Oil price declines might theoretically lead to increased expenditure on other goods and services, boosting real GDP.

Other countries, rather than India, will see an increase in oil prices in the coming months. However, because India had reserved a large amount of oil from Russia throughout the war, it was able to take this step(reducing prices) ahead of other countries.

This will undoubtedly expand our export channels, and India will now be able to provide goods ahead of other countries. This will aid India's development.