The government has decided to revise the prices of petroleum products.
The new price of petrol will be 123.30 rupees per litre which indicate an increase of Rs5 per litre. High-speed diesel (HSD), which is majorly used by the agriculture and transport sectors, will be sold at Rs120.04 per litre after an increase of Rs5.01. The prices of kerosene oil and light diesel oil (LDO) have surged by Rs5.46 and Rs5.92 respectively.
The ex-depot price of HSD has been set at Rs120.04 per litre against the existing Rs115.03. Similarly, kerosene and LDO ex-depot prices have been set at Rs92.26 per litre and Rs90.69 per litre as against the current price of Rs86.8077 per litre and Rs84.77 per litre, respectively.
According to Oil & Gas Regulatory Authority’s (OGRA) workings, the price of HSD was supposed to increase by Rs10.5 per litre and the price of petrol by Re1 per litre, while an increase of Rs5.46 per litre in kerosene and Rs5.92 per litre in LDO prices was to be observed. However, the government made OGRA’s working redundant and by shifting the partial burden from the HSD price to the petrol price. This decision was taken by the government to contain inflationary pressure without further impacting its revenue position.
According to a notification by the Finance Division, the revised prices will be effective from midnight. Oil prices will be revised by the government every two weeks instead of the monthly calculations that were previously being followed. This will help the government pass on international prices published in Platt’s Oilgram.