With the rupee continuing to appreciate in the interbank and open market, the government on Saturday finally broke a two-month trend of successive hikes in prices of petroleum products to lower the prices of petrol and diesel.
According to a notification issued by the Ministry of Finance at midnight, petrol and diesel prices have been fixed at a lower point compared to the previous fortnight.
The notification said that prices of petrol have been reduced by 2.41% or Rs8. As a result, the price of petrol has climbed down from the highest ever position of Rs331.38 to Rs323.38.
Similarly, the price of diesel was lowered by 3.34% or Rs11. As a result, the price of diesel fell from Rs329.18 over the past fortnight to Rs318.18 until October 15.
It is pertinent to note that for the past four reviews of prices of petroleum products, petrol and diesel prices have been consistently hiked.
At the last price hike, the government cited the increase in commodity prices in the international market, noting that the rupee had greatly appreciated before the review on September 15.
Similarly, this time, the government cited lower commodity prices in the international market as the reason for the benefit passed on to consumers.
It is pertinent to note that the rupee has further appreciated in value against the US dollar since the last change in fuel prices.