Govt hikes petrol price by Rs2.43, high-speed diesel by Rs3.02
0
The federal government on Friday night increased the price of petrol by Rs2.43 per litre and that of high-speed diesel (HSD) by Rs3.02 per litre for the next fortnight.
In a late-night announcement, the Ministry of Finance said the revision followed movements in international markets and recommendations from the Oil and Gas Regulatory Authority (Ogra) and relevant ministries.
According to the notification, the price of petrol now stands at Rs265.45 per litre from Rs263.02 per litre. Meanwhile, the price of diesel has increased to Rs278.44 per litre from Rs275.42 per litre.
Most of the transport sector runs on HSD and its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Ogra also notified a Rs5.88 per kilogram (2.83pc) cut in LPG’s consumer price to Rs201.60 per kg (from Rs207.49 per kg).
The price of an 11.8kg cylinder has been set at Rs2,378.89 for November, down Rs69.44 from Rs2,448.53 for October. The government charges about Rs37,342 per tonne in GST and petroleum levy on LPG.
The government charges about Rs99 per litre on both petrol and diesel. Although the general sales tax (GST) is zero on all the petroleum products, the government charges Rs79.50 per litre on diesel and Rs80.52 per litre on petrol and high-octane products on account of the petrol levy and climate support levy.
It also charges about Rs17-18 per litre customs duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre of distribution and sales margins are going to oil companies and their dealers. Petrol and HSD dominate consumption at 700,000 to 800,000 tonnes a month compared to about 10,000 tonnes for kerosene.
Petroleum levy collections reached Rs1.161 trillion in FY25 and are budgeted to rise about 27pc to Rs1.47tr in the current fiscal year.
