In the midst of crippling inflation, the caretaker government raised petrol prices by more than Rs26 and diesel prices by more than Rs17 per litre in its fortnightly review on Friday.
According to the Finance Ministry, the decision was made due to a rise in worldwide oil prices.
According to the Finance Division, the price of petrol will go up by Rs26.02 per litre, and the price of high-speed diesel (HSD) will increase by Rs17.34 per litre. The price of a litre of petrol is now Rs331.38, and the price of HSD is Rs329.18.
This is the second time in a month that petroleum product prices have been raised to an all-time high.
On September 1, the caretaker government raised fuel and diesel prices by more than Rs14.
According to the Finance Division, the increase was caused by the “increasing trend of petroleum prices in the international market and exchange rate fluctuations.”
The price of petrol increased by Rs14.91 per litre, and the price of high-speed diesel (HSD) increased by Rs18.44 per litre at the time.
The increase in petrol prices today was expected due to the surge in global oil Prices.
“The rupee’s appreciation will have a positive impact on petroleum prices, but it will not be enough to offset the impact of rising global oil prices,” a senior industry official told The News.
Every two weeks, the government evaluates and modifies petroleum prices based on Ogra’s recommendations. However, the final decision is made by the finance ministry, which sometimes absorbs a portion of the increase to provide relief to consumers.
However, the government is required to hike fuel prices through a $3 billion standby arrangement with the International Monetary Fund (IMF).
