Petrol Price Is Likely to Increase from Dec 16

The nation is on the brink of another round of fuel price adjustments, scheduled to take effect from December 16, 2024. As anticipation builds, consumers are eager to know the extent of the impact on their wallets.

According to recent media reports, a modest increase of Rs. 0.81 per liter is proposed for petrol, while diesel prices are expected to decrease by Rs. 3.94 per liter. These adjustments are primarily influenced by the volatile international market, particularly due to the ongoing geopolitical tensions in Syria.

Potential Effect on Economy

If the situation in Syria stabilizes, further reductions in fuel prices may become possible. Currently, the global market is characterized by abundant supply and subdued demand, which could potentially lead to more favorable pricing. However, any unforeseen geopolitical developments or changes in global economic conditions could alter this outlook.

Post the proposed revision, petrol is projected to be priced at Rs. 252.92 per liter, while diesel may settle at Rs. 254.53 per liter. It’s worth noting that in the previous fortnightly review, petrol prices increased by Rs. 3.72 per liter, and diesel prices rose by Rs. 3.29 per liter.

Impact On Consumers

The impact of these price changes will be felt across various sectors of the economy. Petrol, primarily used in private vehicles, small vehicles, rickshaws, and two-wheelers, will directly affect the budgets of middle and lower-middle-class individuals. The increase in petrol prices could lead to higher transportation costs, potentially impacting the overall cost of living.

On the other hand, the reduction in diesel prices could bring some relief to the transportation sector, including heavy goods vehicles, trucks, buses, trains, and agricultural machinery. Lower diesel prices could reduce transportation costs for businesses and farmers, potentially leading to lower prices for goods and commodities.

However, it’s important to note that the impact of these price changes on the overall economy will depend on a variety of factors, including the government’s fiscal policies, monetary policies, and overall economic conditions.