The government increased the price of petrol by Rs13.18 per litre and high-speed diesel (HSD) by Rs13.80 on Friday.
Following this adjustment, the new price for petrol is set at Rs310.71 per litre, while high-speed diesel now costs Rs323.30 per litre. According to a press release from the Petroleum Division, these new rates will take effect this Saturday, July 11.
These current rates follow a period of extreme volatility; diesel previously hit a peak of Rs520.35 on April 3, after climbing from Rs281 following the outbreak of the US-Iran conflict on February 28. Similarly, petrol prices peaked at Rs458.41 on April 3, having risen from Rs266 in early March.
Price fluctuations in petrol heavily impact the middle and lower-middle classes, as the fuel is primary for private vehicles, rickshaws, and motorcycles. Meanwhile, diesel price changes broadly affect the public via their impact on power plants, large generators, and the heavy transport sector.
In compliance with IMF conditions, the government doubled the climate support levy to Rs5 per litre starting July 1, while simultaneously reducing the petroleum levy. Consequently, the petroleum levy for diesel is currently approximately Rs80 per litre, while the levy for petrol stands at about Rs70 per litre, plus the Rs5 climate support levy.
Total government charges on high-speed diesel currently amount to approximately Rs101 per litre, consisting of a Rs16 customs duty, the petroleum levy, the climate support levy, and the inland freight equalisation margin. Total taxes on petrol amount to Rs95 per litre, which includes a Rs20 customs duty alongside the petroleum and climate levies.
Additionally, the government applies a petroleum levy of approximately Rs21 per litre on kerosene and Rs16 per litre on light diesel oil.
Petrol and high-speed diesel remain the primary revenue drivers for the state, with combined monthly sales reaching between 700,000 and 800,000 tonnes, dwarfing the monthly kerosene demand of approximately 10,000 tonnes.
