Government raises petrol, cuts diesel rates

The government raised petrol by Rs2.02 per litre and cut high-speed diesel by Rs3.59 per litre, changing retail rates from Sept 26.

A Petroleum Division notification said petrol will retail at Rs391.30 per litre and HSD at Rs408.53; the government continues to levy Rs114 per litre in taxes on petrol and Rs100 on diesel.

The notification said HSD has fallen from a peak of Rs520.35 recorded on April 3 after rising from Rs281 per litre following hostilities between the US and Iran on Feb 28. Petrol peaked at Rs458.41 on April 3 after climbing from Rs266 in early March, the notification said.

Officials said the government has reintroduced austerity measures, including a 9pm market closing time and a 50% cut in fuel allocations for official vehicles for three months. The prime minister on Sept 13 announced a relief scheme for motorcycles, auto rickshaws and vehicles up to 800cc to ease fuel costs for small-vehicle users.

Petroleum Division

The petroleum minister announced on July 17 that fuel prices would be fixed on a daily basis based on international market trends, replacing weekly revisions. Data showed petrol and HSD account for about 700,000–800,000 tonnes in monthly sales, versus roughly 10,000 tonnes for kerosene.

Officials said the new prices apply from Sept 26–28 and that the next scheduled review is Sept 29.