The recent move by the caretaker government to raise the prices of petrol and high-speed diesel (HSD) has caused significant distress among consumers. The new prices will be Rs305.36 per litre for petrol and Rs311.84 per litre for HSD, due to an increase of Rs14.91 and Rs18.44 per litre respectively. These revisions were announced by the Ministry of Finance in a post on X (formerly Twitter) after midnight.
However, it is important to note that there has been no change in the prices of kerosene or light diesel oil.
This latest price hike follows a significant increase in fuel prices just last month, when the interim government raised prices by up to Rs20 per litre on August 15. This rise in petroleum prices came after similar increases by the previous government on August 1.
The hike in prices can be attributed to existing tax rates and import parity prices. Currency depreciation and a slight rise in international oil prices were also contributing factors.
The value of the rupee has continued to decline against the US dollar, with a depreciation of Rs1.09 in the interbank market. This has resulted in a record low of Rs305.54 against the US dollar. Since the caretaker government took office, the rupee has seen a decrease of 4.6 percent, and in August alone, it depreciated by 6.2 percent.
This increase in fuel prices is likely to have a significant impact on the cost of living for the average consumer. The rise in transportation costs will translate into higher prices for essential goods and services, adding to the burden on households already struggling with other economic challenges.
It remains to be seen how these price hikes will affect the overall economy and the purchasing power of the people. As motorists and businesses brace themselves for the increased costs, the government will have to address the concerns of the public and ensure that appropriate measures are taken to mitigate the impact of these price increases.