The Finance Division on Tuesday notified new rates of petroleum products for the next fortnight, raising the price of petrol by Rs. 4.07/liter and of high-speed diesel by Rs. 4.04/liter.
In a press release, the Finance Division said the rate of petrol price for the next fortnight would be Rs. 268.68/liter, up from Rs. 264.61/liter. It notified the new price of diesel at Rs. 276.81/liter, up from Rs. 272.77/liter. The new price, it said, was in accordance with recommendations of the Oil and Gas Regulatory Authority (OGRA) and relevant ministries.
On Sept. 15, the government had retained the price of petrol at Rs. 264.61/liter, while raising that of diesel by Rs. 2.78/liter.
Also on Tuesday, OGRA notified a decrease in the price of liquefied petroleum gas (LPG) by Rs. 6.70/kg for the month of October. Consequently, a 11.8kg cylinder of LPG now costs Rs. 2,448.33, down from Rs. 2,527.47. “The LPG producer price is linked with Saudi Aramco-CP and U.S. dollar exchange rate. As compared to previous month, Saudi Aramco-CP has decreased by 3.78%. The average dollar exchange rate has slightly increased by 0.23%,” it said.
The hike in petroleum prices is expected to have an inflationary impact, as petrol is primarily used for private transport and affects middle- and lower-income households. Diesel, meanwhile, fuels heavy transport and agricultural machinery, with price hikes often resulting in higher prices for food and other essential items.