The government on Friday once again increased the prices of petrol and high-speed diesel by Rs. 3.66/liter and Rs. 4.80/liter, respectively, despite a noticeable decline in global oil prices.
Following the latest daily review, the consumer price of petrol has reached Rs. 335.18/liter, and that of diesel Rs. 383.46/liter. The full price includes Rs. 110/liter in taxes and duties on petrol and Rs. 96/liter on diesel.
According to the Petroleum Division’s notification, the new prices would be applicable for July 25 (Saturday). The latest hike comes as oil prices have fallen roughly 5% in the global market.
Since the government implement a daily price fixation mechanism, the total price of petrol has increased from Rs. 316.15/liter to Rs. 335.18/liter, or a hike of Rs. 19.03/liter. Diesel, meanwhile, has spiked Rs. 29.11/liter, going from Rs. 354.35/liter to Rs. 383.46/liter.
According to the government, the Oil and Gas Regulatory Authority (OGRA) decides the daily fuel prices based on a weekly average.
Primarily used by commuters, shifts in the price of petrol affect the middle and lower-middle classes. Diesel, meanwhile, is mostly used in the heavy transport sector and an increase to its prices is considered inflationary due to its impact on the prices of essential commodities.