The government on Friday reduced the price of petrol and high-speed diesel by Rs. 5/liter each for the next week.
In a notification, the Petroleum Division said the new fuel rates, petrol at Rs. 409.78/liter and diesel at Rs. 409.58/liter, would come into effect from May 16. This is the first reduction in several weeks; in last week’s review, the government had raised the price of petrol by Rs. 14.92/liter and diesel by Rs. 15/liter, both entirely in the form of hikes to the petroleum development levy.
The government broke away from its historical practice of fortnightly fuel price revisions amidst supply disruptions caused by the Iran conflict, which began on Feb. 28. Despite an ongoing ceasefire, a deadlock in peace talks has raised fears of further disruptions, with oil prices once more beginning to inch up in the global market.
The price reduction in petrol would primarily benefit commuters, as it is used in small vehicles, rickshaws and two-wheelers. The transport and agriculture sectors, meanwhile, primarily rely on diesel, and price shifts to it can pose inflationary risks.