The government announced a petrol price cut and a diesel reduction for the next two weeks. Petrol is now priced at Rs263.45 per litre, while diesel is set at Rs279.65. Officials said the new rates will take effect from December 1 after approval from the Oil and Gas Regulatory Authority.
The new prices aim to give some relief to consumers. Diesel is crucial for heavy transport, trains, and farming equipment, so any change affects inflation. Lower diesel rates can ease transport costs and reduce pressure on food prices. Petrol mainly affects private vehicles and directly impacts middle-income families.
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The government said taxes on both fuels remain high. It charges about Rs99 per litre on petrol and diesel. Although GST is zero, the levy and climate support charges still add more than Rs79 per litre on both fuels. Customs duty and dealer margins further raise the final price.
Petrol and diesel dominate national fuel use, with monthly consumption reaching up to 800,000 tonnes. In comparison, kerosene demand remains very low. Officials said these two fuels generate most of the revenue for the energy sector.
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The petrol price cut comes as the government targets higher petroleum levy collections this fiscal year. The levy reached Rs1.161 trillion last year and is expected to rise by 27 percent. The petrol price cut may offer short-term relief, but overall fuel taxation remains heavy.