Government slashes petrol and diesel prices amid global market trends

The government has announced a significant reduction in the prices of petrol and high-speed diesel (HSD) for the upcoming fortnight. The price of petrol has been decreased by Rs5.45 per litre, bringing it down to Rs288.49, while the price of HSD has been cut by Rs8.42 per litre, now standing at Rs281.96. This decision comes as a result of fluctuations in the international market, where the prices of petroleum products have been on a downward trend over the past two weeks.

Just a fortnight ago, the government had raised the prices of petrol and HSD by Rs4.53 and Rs8.14 per litre, respectively. Currently, the government has reached the maximum permissible limit of Rs60 per litre for the petroleum levy on both petrol and HSD.

Sources familiar with the matter had predicted these price reductions, estimating a drop of around Rs5 per litre for petrol and Rs9 per litre for diesel. This forecast was primarily based on the decline in international prices and import premiums. International market data shows that the prices of petrol and HSD have decreased by approximately $3 and $5 per barrel, respectively, in the last two weeks.

The government's decision to lower petrol and diesel prices reflects the impact of global market trends on domestic fuel costs. Consumers can expect some relief at the pump as these reductions take effect, providing a brief respite from recent price hikes.