The federal government has announced that the price of petrol will remain unchanged at Rs252.10 per litre for the fortnight ending December 31, 2024. Meanwhile, prices for high-speed diesel (HSD), kerosene, and light diesel oil (LDO) have been slightly reduced, offering minor relief to consumers.
Revised Prices
| Product | Previous Price | New Price | Change |
|---|---|---|---|
| Petrol | Rs252.10 | Rs252.10 | No change |
| High-Speed Diesel | Rs258.43 | Rs255.38 | -Rs3.05 |
| Kerosene | Rs164.98 | Rs161.66 | -Rs3.32 |
| Light Diesel Oil | Rs151.73 | Rs148.95 | -Rs2.78 |
Background and Impacts
- Global Market Trends:
The adjustments reflect price fluctuations in the international oil market over the past fortnight. While crude oil availability is high, lower global demand has led to price stability. - Impact on Consumers:
- Petrol: Essential for private vehicles, small transport, and motorcycles, its steady price will offer no additional financial relief for middle and lower-income groups, who rely heavily on petrol for daily commuting.
- High-Speed Diesel: Widely used in heavy transport, agriculture, and logistics, its reduced cost could moderate inflationary pressures on goods and food prices.
- Kerosene and Light Diesel: Commonly used in rural areas and for industrial purposes, the price cuts provide minor support for these sectors.
Economic Context
In the last review, petrol prices were increased by Rs3.72 per litre, contributing to inflationary pressures. With this announcement, the government aims to balance consumer relief and the need for fiscal revenue, particularly in light of fluctuating global oil prices and ongoing economic recovery efforts.
Further price adjustments will depend on international market trends and the economic situation domestically.
