File photo. Asif Hassan—AFP
The Finance Division on Wednesday night announced fuel prices for the next two weeks, with effect from March 16, raising the price of petrol by Rs. 5/liter and diesel by Rs. 13/liter.
According to a notification, the price hike has resulted from the rupee’s depreciation against the U.S. dollar, as well as an increase in the prices of crude oil at Platts Singapore. “Accordingly the price of [petrol] has increased by Rs. 5 per liter and the price of high-speed diesel has increased by Rs. 13 per liter,” it added.
Under the new rates, the price of petrol has been increased from Rs. 267 to Rs. 272/liter; high-speed diesel from Rs. 280 to Rs. 293/liter; and kerosene oil from Rs. 187.73 to Rs. 190.29/liter. The price of light-diesel oil has been kept unchanged at Rs. 184.68/liter.
According to the notification, the prices of kerosene and light-diesel witnessed minimal or no increased because the government decreased the amount it collects from their sale through taxes. The new prices would continue until March 31, when the next fortnightly review is due.
The drastic jump to high-speed diesel prices is likely to boost inflation—especially ahead of the month of Ramzan—as it is the primary fuel for the transport sector, and has a domino effect on the prices of commodities that are transported inland.