Government Announces Price Reductions in Petrol, Diesel, and Kerosene

The federal government has announced a reduction in the prices of petrol, high-speed diesel, and kerosene. The new prices will come into effect from midnight tonight, March 1, and will remain in place until March 15.

• Petrol Price Reduction: The price of petrol has been reduced by 50 paise per liter, bringing the new price to Rs 255.63 per liter.
• Diesel Price Reduction: High-speed diesel will be cheaper by Rs 5.31 per liter, with the new price set at Rs 258.64 per liter.
• Kerosene Price Reduction: Kerosene prices have also been reduced by Rs 3.53 per liter, with the new price at Rs 168.12 per liter.

These reductions are part of the government's decision to lower the prices of petroleum products during the period from March 1 to March 15.

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Inflation Increases Ahead of Ramadan

As Ramadan approaches, inflation has started to rise once again, especially with the increased prices of essential items. Before the holy month, many items, including meat, potatoes, onions, sugar, chicken, and tomatoes, saw price hikes.

• Weekly Inflation: The weekly inflation rate has risen above 3% due to price increases in 19 essential items. The Consumer Price Index (CPI) for the week ending February 27 recorded 320.32 points, up from 310.12 points in the previous week.
• Price Changes: During the past week, the prices of 11 daily necessities decreased, and 21 items remained stable. However, 19 items saw a price increase.
  • Items that Increased: Tomatoes (up by 11.49%), bananas (up by 8.32%), eggs (up by 5.43%), chicken (up by 4.13%), potatoes (up by 2.79%), onions (up by 2.04%), beef (up by 1.68%), sugar (up by 1.55%), and cigarettes (up by 0.51%).
  • Items that Decreased: Lipton tea (-6.62%), bread (-1.67%), dal mash (-1.12%), mustard oil (-1.08%), garlic (-1%), LPG (-0.37%), and gram flour (various reductions).

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Impact on Price Sensitive Groups

The price-sensitive index for various income groups has also risen:

• For the group with a monthly income of Rs 17,732, the index increased by 0.36%.
• For groups earning Rs 17,733 to Rs 22,888, Rs 22,889 to Rs 29,517, and Rs 29,518 to Rs 44,175, the index rose by 0.38%, 0.37%, and 0.42%, respectively.
• For higher-income groups, the price-sensitive index increased by 0.33%.

The price-sensitive index is calculated based on the price changes of 51 essential commodities in 50 markets across 17 major cities in the country.