As the nation grapples with high electricity bills, the caretaker government late on Thursday increased the prices of petrol and diesel by over Rs 14.
The finance division said the increase was due to “increasing trend in petroleum prices in the international market and changes in exchange rates”.
The finance division said that the price of petrol will increase by Rs 14 91 paise per liter and the price of high speed diesel (HSD) by Rs 18 44 paise per litre. Now the price of a liter of petrol will be Rs 305.36 and the price of HSD will be Rs 311.84.
The local currency is at an all-time low following the easing of import restrictions, boosting demand for the greenback and increasing risks associated with financing the country’s current account deficit.
The rupee has fallen to more than 15 rupees in the interbank market since the formation of the caretaker government, which has been tasked with overseeing at least one review of the International Monetary Fund’s (IMF) $3 billion standby arrangement. And leading the country to a national election that is theoretically due by November.
| Product | Existing price | New price w.e.f Sept 1 | Change |
| Petrol | 290.45 | 305.36 | +14.91 |
| Diesel | 293.40 | 311.84 | +18.44 |
Earlier today, The News, citing oil industry sources, reported that the interim government may hike petrol and diesel prices.
According to the working of the oil industry, there is a possibility of a substantial increase in the prices of petrol and high speed diesel with respect to the ex-depot prices of petroleum. The government will review petroleum prices on Thursday night as part of a fortnightly review of the pricing formula.
On August 1, the government had increased the price of petrol by Rs 19.95 per liter and the price of high-speed diesel by Rs 19.90 per litre.
On August 16, the price of petrol was increased by Rs 17.50 per liter and the price of high speed diesel by Rs 20 per litre.
