Government has announced cutting petrol price by Rs 2.07 per litre and high-speed diesel (HSD) by Rs 3.40 per litre for the upcoming fortnight.
Petroleum product prices have dropped for the past five years, mostly as a result of a drop in global oil prices.
The cost of high-speed diesel has decreased by Rs. 3.40 per litre to Rs. 246.29, while the cost of gasoline has decreased by Rs. 2.07 per litre to Rs. 247.03. The revised rates will take effect on October 1.
Additionally, the cost of light diesel oil has decreased by Rs. 1.03 per litre to Rs. 140.9 and the cost of kerosene oil has decreased by Rs. 3.57 per litre to Rs. 154.9.
The government lowered the price of gasoline by Rs. 10 per litre to Rs. 249.10 at the most recent fortnightly review of petroleum pricing on September 15, while the price of high-speed diesel was lowered by Rs. 13.06 per litre to Rs. 249.69.
Read more: Punjab reduces transport fares by 30 to 70 rupees following cut in petrol, diesel prices
The reduction in petrol and diesel price can have several positive impacts on the economy:
- Lower Transportation Costs:
Lower fuel prices have the potential to lower consumer prices by lowering the cost of transportation for products and services.
- Increased Disposable Income:
As they spend less on fuel, consumers will have more money that is available to them. This can encourage economic growth by increasing spending in other sectors of the economy.
- Reduced Inflationary Pressure:
Since transportation costs account for a large portion of the total cost of goods and services, lower fuel prices can help control inflation.
- Boost to Industries:
Transportation-intensive industries including manufacturing, logistics, and agriculture may have lower operating costs, which will boost their profitability and competitiveness.
- Consumer Confidence:
Consumer confidence might rise in response to lower fuel prices, stimulating investment and spending.
However, it’s important to note that the overall impact will depend on various factors, including the duration of the price reduction and the broader economic context.