Government Lowers Petrol Prices by Rs4; Diesel Rates Remain Stable

The government announced a reduction in petrol prices by Rs4 per litre on Friday, while diesel rates remain unchanged for the week ending June 12. This adjustment follows fluctuations in global oil prices over the past seven days.

Consequently, the ex-depot price for high-speed diesel (HSD) will remain steady at Rs380.78 per litre. To prevent a price hike and mitigate inflationary pressure, the government adjusted taxes and other levies to maintain the current diesel rate.

Diesel prices have declined significantly from their peak of Rs520.35 recorded on April 10. Due to its widespread use in freight transport, HSD is viewed as a primary driver of inflation.

The ex-depot price of petrol has been lowered to Rs377.79 per litre, down from the previous rate of Rs381.78 per litre.

This marks the fourth consecutive weekly drop in petrol prices, resulting in a total cumulative reduction of approximately Rs37 per litre.

In the previous week’s update, the government had implemented a substantial reduction of Rs22 per litre for both petrol and high-speed diesel.

Currently, the government collects roughly Rs100 per litre on HSD through customs duty, the petroleum levy, the climate support levy, and the inland freight equalisation margin.

Total taxes on petrol are higher, standing at Rs125 per litre, encompassing the petroleum levy, customs duty, and climate levy.

Additionally, a petroleum levy of approximately Rs21 per litre is applied to kerosene, while light diesel oil is taxed at about Rs16 per litre.

Petrol and HSD remain the primary revenue generators for the state, with monthly sales ranging between 700,000 and 800,000 tonnes, significantly outweighing the monthly demand for kerosene, which stands at approximately 10,000 tonnes.

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