The interim government on Monday reduced by Rs. 8/liter the price of petrol for the next two weeks, with the new consumer rate fixed at Rs. 259.34/liter.
In a notification, the Finance Division said that, as recommended by the Oil and Gas Regulatory Authority (OGRA), it was reducing the price of petrol for the next fortnight starting from Jan. 16 (Tuesday), while maintaining the price of high-speed diesel.
According to the notification, the price of petrol has been reduced by Rs. 8/liter, going from Rs. 267.34 to Rs. 259.34/liter. The price of high-speed diesel has been retained at Rs. 276.21/liter, while light-diesel oil has been reduced by Rs. 0.92/liter to Rs. 164.83/liter. Kerosene oil, meanwhile, has been reduced by Rs. 1.97/liter, going from Rs. 188.83/liter to Rs. 186.86/liter.
The rupee maintaining its value against the U.S. dollar, as well as a decreased in global prices, motivates the petrol price reduction. As the government has already achieved the maximum permissible Rs. 60/liter imposition of petroleum levy on both petrol and diesel, it is no longer considered a factor in the pricing mechanism.
While petrol is primarily used in private transport, including motorcycles, high-speed diesel is the primary fuel for the transport sector, indicating there is unlikely to be a major impact on inflation from the current prices.