Starting March 1, petrol prices are expected to rise by Rs4 to Rs4.50 per litre, while high-speed diesel (HSD) may see a slight decrease. These changes are influenced by fluctuations in global oil prices and exchange rates. The final price adjustments will be made on February 28, based on Brent crude prices and the rupee-dollar exchange rate.
Currently, the ex-depot price of petrol is Rs256.13 per litre, and HSD is priced at Rs263.95 per litre. Kerosene, with an official rate of Rs171.65 per litre, is being sold in the market at much higher prices, ranging from Rs300 to Rs350 per litre.
Petrol is widely used in private vehicles, motorcycles, and small transportation, making any increase in its price a significant burden on middle and lower-income groups. Diesel, on the other hand, is essential for heavy transport, agriculture, and railways, meaning changes in its price have a direct impact on inflation and the cost of essential goods.
The government continues to collect about Rs76 per litre in taxes on both petrol and diesel, despite maintaining a zero-rate general sales tax (GST). This includes a petroleum development levy (PDL) of Rs60 per litre and customs duties of Rs16 per litre. Oil marketing companies and dealers also charge around Rs17 per litre in margins on both fuels. Additionally, luxury fuels such as light diesel, high-octane blending components, and 95RON petrol carry a Rs50 per litre petroleum development levy.
Petrol and HSD remain the government’s main sources of revenue, with monthly sales ranging between 700,000 and 800,000 tonnes. In comparison, the demand for kerosene remains low at about 10,000 tonnes per month.
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