The Finance Ministry has announced a reduction in the price of diesel while keeping the price of petrol unchanged. This decision follows a price review by the Oil and Gas Regulatory Authority (OGRA), based on fluctuations in international oil prices over the past two weeks.
Diesel Price Reduction
- New Diesel Price: The ex-depot price of High-Speed Diesel (HSD) has been reduced by Rs3.05 per litre (1.18%) to Rs255.38 per litre for the next 16 days, down from Rs258.43 in the previous fortnight.
- Impact on Transport Sector: Diesel is primarily used in heavy transport vehicles, including trains, trucks, buses, tractors, tube-wells, and threshers. As a result, its price affects the cost of transportation and subsequently impacts the prices of vegetables and other essential commodities. While diesel prices have dropped, transport fares are unlikely to decrease significantly.
Petrol Price Remains the Same
- Current Petrol Price: The ex-depot price of petrol remains unchanged at Rs252.10 per litre.
- Impact on Public: Petrol is widely consumed in private transport, small vehicles, rickshaws, and two-wheelers, which primarily affect the middle- and lower-middle-class budgets.
Other Price Adjustments
- Kerosene Oil: The price of kerosene oil has been reduced by Rs3.32 per litre, bringing it down to Rs161.66 per litre.
- Light Diesel: The price of light diesel has been reduced by Rs2.78 per litre, making the new price Rs148.95 per litre.
Tax and Duty Structure
- The government is currently charging Rs76 per litre in taxes on both petrol and HSD. While the General Sales Tax (GST) is set at zero for all petroleum products, the government is imposing a Petroleum Development Levy (PDL) of Rs60 per litre on both petrol and HSD, which impacts consumers.
- Additionally, the government is charging Rs16 per litre as a customs duty on both petrol and HSD, regardless of whether these products are locally produced or imported.
- Oil companies and dealers receive about Rs17 per litre as distribution and sale margins for these products.
- For luxury vehicles, the government charges Rs50 per litre on light diesel and high-octane blending components used in 95RON petrol.
