Going against market expectations, the government raises petrol price by Rs1.35 per litre, bringing the cost up to Rs248.38 per litre, effective from November 1. The latest hike comes amid fluctuations in the global oil market, as outlined by the Oil and Gas Regulatory Authority (OGRA). Similarly, the price of high-speed diesel (HSD) has increased by Rs3.85, pushing it to Rs255.14 per litre, which is expected to strain household budgets and transportation costs further.
Government Raises Petrol Price BY Rs1.35
The government raises petrol prices in response to global oil price trends, affecting daily commuters, especially the middle and lower-middle classes. Petrol, a primary fuel for small vehicles, motorbikes, and rickshaws, is essential for private transportation. With the new price of Rs248.38 per litre, up from Rs247.03, the cost of commuting will likely rise, impacting consumers’ monthly expenses, this increase affects individuals who rely on petrol for daily travel, particularly as fuel costs contribute significantly to overall inflation.
The Economic Impact
The Rs3.85 increase in high-speed diesel (HSD) price, now Rs255.14 per litre, is likely to have economic implications. HSD is crucial for heavy transport vehicles, agricultural machinery, and industrial use, meaning higher prices may lead to rising costs for goods transportation and agriculture. The increase in diesel costs is expected to contribute to inflation, particularly affecting the prices of vegetables, grains, and other food items. As these costs permeate various sectors, consumers may feel the pinch through higher market prices, intensifying the impact on everyday household budgets. Meanwhile, kerosene and light diesel oil prices have seen slight reductions, though these may offer only limited relief amidst the broader increases in petrol and diesel costs.
Read more: Government Hikes Petrol Price by Rs9.99, HSD by Rs6.18
