The government on Wednesday slashed the rates for petrol and high-speed diesel (HSD) price by Rs10.28 and Rs8.57, respectively, for the coming fortnight.
In a late-night announcement, the Petroleum Division said the revision followed movements in international markets and recommendations from the Oil and Gas Regulatory Authority (Ogra). According to the announcement, the ex-depot petrol price was reduced to Rs253.17 per litre from its previous price of Rs263.45. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, the ex-depot price of HSD was decreased to Rs257.08 per litre for the current fortnight from Rs265.65 per litre. Most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells, threshers, and particularly adds to the prices of vegetables and other eatables. Although general sales tax (GST) is zero on all the petroleum products, the government is charging Rs78 per litre on diesel and Rs82 per litre on petrol and high octane products on account of petrol levy and an Rs2.50 per litre climate support levy (CSL). The government is also charging about Rs16-17 per litre custom duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.