The government on Friday cut the petrol price by Rs4 per litre and kept the diesel rate unchanged with immediate effect for the week ending June 12, owing to changes in global prices over the past week.

Accordingly, the ex-depot price of high-speed diesel (HSD) will remain fixed at Rs380.78 per litre for another week. The government made adjustments in taxes and other levies to maintain the diesel price, which is otherwise considered on the higher side.

The diesel price has come down from a peak of Rs520.35 recorded on April 10. HSD is considered the most inflationary fuel, given its extensive use in freight transportation.

The ex-depot price of petrol was cut by Rs4 to Rs377.79 per litre, from the current Rs381.78 per litre.

This is the fourth consecutive weekly reduction in petrol prices, with a cumulative decline of about Rs37 per litre.

Last week, the government announced a reduction of Rs22 per litre in the prices of petrol and high-speed diesel.

The government is currently charging about Rs100 per litre on HSD in the form of customs duty, petroleum levy and climate support levy, besides the inland freight equalisation margin. Meanwhile, the total tax on petrol stands at Rs125 per litre, including petroleum levy, customs duty and climate levy.

The government is also charging about Rs21 per litre as petroleum levy on kerosene and about Rs16 per litre on light diesel oil. Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.