In a surprising move that’s sure to bring some relief to commuters, the federal government has slashed the petrol price by Rs7.54 per litre for the first half of August.

According to a notification issued on Thursday, the new petrol price stands at Rs264.61, down from Rs272.15, effective August 1. However, there’s a flip side.

While petrol prices are falling, the cost of high-speed diesel (HSD) has gone up by Rs1.48, pushing the new diesel price to Rs285.83 per litre. This marks the second consecutive hike for diesel after a sharp Rs11.37 increase in the previous fortnight.

The shift in petrol and diesel prices will be felt differently across sectors. Petrol is commonly used in motorcycles, cars, and rickshaws, making it essential for middle- and lower-income households. The price drop offers temporary relief for daily commuters who have been burdened by continuous fuel cost hikes.

Diesel, on the other hand, powers heavy transport vehicles, trains, buses, and agricultural machinery like tractors and tube wells. Any increase in diesel prices tends to have a ripple effect, driving up the cost of transporting essential goods—particularly vegetables and food items—adding to inflationary pressure.

This latest revision in petrol and diesel prices paints a mixed picture. While urban dwellers and private commuters may find some breathing room thanks to cheaper petrol, the rising cost of diesel could mean higher food prices and increased transportation fares in the days ahead.

In mid-July, the government had raised petrol prices by Rs5.36, so the new reduction may help offset some of that burden. However, continued increases in diesel could continue to squeeze household budgets, especially in rural areas and commercial sectors.