Petrol Price Drops by Rs8 per Litre, While Diesel Remains Unchanged

News Desk3 months ago
Petrol Price Drops by Rs8 per Litre, While Diesel Remains Unchanged

On Monday, the interim government announced a reduction in petrol prices by Rs8 per litre for the upcoming fortnight.

The Finance Division, in a released notification, stated that this decision was made in accordance with the recommendations put forth by the Oil and Gas Regulatory Authority, with the adjusted ex-depot price now standing at Rs259.34 per litre, down from the previous rate of Rs267.34 per litre.

No modifications were reported for the prices of high-speed diesel, light-diesel oil, and kerosene oil. The government has successfully reached the maximum permissible limit of Rs60 per litre for the petroleum levy, as mandated by law, on both petrol and high-speed diesel.

The budgetary target for petroleum levy collection during the current fiscal year, set at Rs869 billion under the commitments to the International Monetary Fund (IMF), is anticipated to exceed Rs950 billion by June.

Also Read: The Previous Expectations of Economists and Key Points

Petroleum and electricity prices have significantly contributed to inflation, which reached 29.7% in December, as indicated by the Consumer Price Index. Currently, the government imposes a tax of about Rs82 per litre on both petrol and high-speed diesel.

Although there is presently a zero general sales tax on all petroleum products, the government applies a Rs60 per litre petroleum development levy on petrol, along with Rs50 each on high-speed diesel, high-octane blending component, and 95 research octane number (RON) petrol.

Certainly, here’s a simplified table summarizing the changes in fuel prices mentioned:

Fuel Type Previous Price (Rs/Litre) Revised Price (Rs/Litre)
Petrol 267.34 259.34
High-Speed Diesel No Change No Change
Light-Diesel Oil No Change No Change
Kerosene Oil No Change No Change

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