Petroleum Prices Commotion: Govt revises Fuel Prices in Surprise Move

In a sudden turn of events, the government has revised petroleum product prices, causing a stir among consumers. The Ministry of Finance has announced a new pricing structure, effective from today, with reductions in light diesel and kerosene prices, while increasing those of high-speed diesel and petrol.

Contrary to the trend of declining international market rates, the government has opted to increase the prices of petrol and high-speed diesel by Rs 1.35 and Rs 3.85 per liter, respectively. The revised rates are Rs 248.38 per liter for petrol and Rs 255.14 per liter for high-speed diesel, making them the new ex-depot prices until November 15. However, the price of light diesel has dropped by Rs 2.61 to Rs 147.51 per liter, and kerosene has been reduced by Rs 1.48 to Rs 161.54 per liter.

This move by the government comes after it retained a part of the previous price revision, resulting in inventory losses for oil companies. Despite the drop in international prices, the government has chosen to increase the prices to offset these losses. The prices of LPG (liquefied petroleum gas) have also been increased by about Rs 2.88 per kg for the month of November, contributing to the revised pricing structure.

The revisions have sparked a mix of reactions from consumers, with some welcoming the reduction in light diesel and kerosene prices, while others are negatively impacted by the hike in petrol and high-speed diesel prices. As the prices take effect immediately, it remains to be seen how the move will pan out in the market and its impact on the economy in the long run.