The government on Monday decreased the high-speed diesel (HSD) price by Rs14 and kept the petrol price unchanged for the fortnight ending December 31, owing to favourable international market prices.
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 price of HSD has been reduced by Rs14 per litre (5pc) to Rs265.65 per litre for the current fortnight from Rs279.65 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.
Transporters had already increased their fares based on an approximate Rs27 per litre increase between May and August, and have not reversed them despite a Rs9 per litre cut.
The ex-depot petrol price was kept unchanged at Rs263.45 per litre. 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.
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.
Petrol and HSD are the major revenue spinners with their monthly average sales of about 700,000 – 800,000 tonnes per month compared to just 10,000 tonnes of monthly demand for kerosene. The government recovered about Rs1.161 trillion through the petroleum levy alone in FY2025 and expects this to jump by about 27pc to Rs1.470 trillion during the current fiscal year.
