The Cabinet Committee on Political Affairs decided on Wednesday to reduce petrol prices by Rs 5.54 per litre, diesel by Rs 2.18 per litre and cooking gas by Rs 25 per cylinder. The new prices became effective from midnight itself.
The Cabinet Committee on Political Affairs also decided against raising excise and import duties as this would have had adverse impact on the quantum of reduction in the fuel prices.
The farm and transport sectors are major consumers of diesel. The lowering of diesel’s price is thus expected to help reduce inflation and increase the impact of the government’s economic and fiscal stimulus packages.