The prices of high-speed diesel (HSD) and petrol are expected to be reduced by about Rs5-19 per litre for the October 1-15 period, due to the rupee's appreciation and a slight decline in the international price of oil. This would be the first decrease in two months.
Petrol is used in private transport, small vehicles, rickshaws and motorcycles, so a price reduction would directly benefit the middle- and lower-middle classes.
The HSD price could also go down by Rs9-12 per litre if the government maintains the petroleum levy at Rs50 per litre. However, if the government increases the levy by Rs5 per litre, the diesel price would be cut by Rs5-8 per litre.
Unlike petrol, the HSD price in the international market rose by about $1 per barrel to $122 in recent weeks.
