In a move aimed at providing relief to consumers, the government has announced a significant reduction in fuel prices, effective from midnight. This marks the fourth consecutive price cut in the last two months, driven by declining rates in the international market.
According to a statement from the Finance Division, the Oil and Gas Regulatory Authority (OGRA) calculated the new prices based on global fuel price fluctuations. As a result, petrol prices have been reduced by Rs10 per litre, bringing the new price down from Rs259.10 to Rs249.10.
In addition, the price of high-speed diesel (HSD) has been slashed by Rs13.06 per litre, reducing it from Rs262.75 to Rs249.69. Kerosene has seen a decrease of Rs11.15, with the new price set at Rs158.47, while light diesel oil is now priced at Rs141.93, after a Rs12.12 reduction.
Impact on Transportation and Inflation
Petrol, primarily used in private vehicles, rickshaws, and motorcycles, plays a crucial role in the daily commute of middle- and lower-middle-class citizens. The reduction in petrol prices is expected to provide much-needed relief to this segment of the population, whose household budgets have been strained by previous hikes in fuel costs.
High-speed diesel, on the other hand, is a key fuel for heavy transport vehicles such as trucks, buses, and agricultural machinery. Its price is considered inflationary, as it directly impacts the cost of transporting goods, including essential food items like vegetables. The reduction in HSD prices is expected to alleviate some of the inflationary pressure on food prices, providing indirect relief to consumers.
The latest price cuts follow a small reduction in petrol prices just two weeks ago, where the government lowered the rate by Rs1.86 per litre, from Rs260.96 to Rs259.10. These continued reductions are part of the government’s response to falling global oil prices and aim to provide some relief amid ongoing inflation.
The new fuel prices are now in effect across the country, offering a temporary respite for consumers facing economic challenges.
