Rs3.9 per litre reduction in diesel price likely

The price of high-speed diesel may go down by Rs3.90 per litre effective from December 16 in line with fluctuations in the global oil market. Diesel is mainly used in transport and agriculture sectors and the reduction will have a disinflationary impact on consumers. However, the price of petrol is anticipated to be increased by 81 paisa per litre when the government announces its fortnightly rate revision on December 15. The inland freight equalisation margin for petrol and high-speed diesel is projected at Rs7.92 and Rs4.15 per litre, respectively. If the petrol price goes up by 81 paisa, it will reach Rs252.91 per litre. Petrol is mainly consumed in motorcycles and passenger cars. The price of high-speed diesel, however, is expected to fall from Rs258.43 to Rs254.53 per litre, a decrease of Rs3.90.