The federal government on Monday announced it is keeping the consumer price of petrol unchanged for the next fortnight, while reducing the price of high-speed diesel by Rs. 3/liter.
In a statement, the Ministry of Finance said the new fuel prices would come into effect from Sept. 1. It also announced a Rs. 1.46/liter reduction to the price of Superior Kerosene Oil (SKO) and a Rs. 2.4/liter decrease to the price of Light Diesel Oil.
Following the reductions, high speed diesel would cost Rs. 269.99/liter; kerosene Rs. 176.81/liter; and light diesel Rs. 159.76/liter. The price of petrol remains unchanged at Rs. 264.61/liter.
Petrol is primarily used for private consumption, including small vehicles, rickshaws, and bikes. While any hikes to its rate can adversely impact middle- and lower-income households, it has little impact on commodity price, unlike diesel, which is primarily used by the transport sector.
Any hikes to diesel are considered particularly inflationary and can lead to hikes in prices of essential commodities, especially in urban settings.