The federal government on Friday night once again increased petrol and diesel prices—both by nearly Rs. 15/liter—for the coming week, with the hikes entirely attributed to higher taxes rather than any global pricing surge.
In a notification, the Petroleum Division said the new fuel rates would come into effect from May 9. It has increased the price of petrol from Rs. 399.86/liter to Rs. 414.78/liter, a boost of Rs. 14.92/liter, while the price of high-speed diesel has increased from Rs. 399.58/liter to Rs. 414.58/liter, a Rs. 15/liter hike. The price of kerosene, meanwhile, has decline by Rs. 41.8/liter to Rs. 318.96/liter.
This is the third consecutive increase in petrol and diesel prices, coming as global prices are stabilizing on the back of progress in peace talks between the United States and Iran.
According to a notification, the government is currently imposing Rs. 42.6/liter in petroleum development levy (PDL) on high-speed diesel; Rs. 117.41/liter on petrol; Rs. 305.37/liter on high octane fuel; Rs. 20.36/liter on kerosene oil; Rs. 15.84/liter on light diesel; and Rs. 77/liter on furnace oil.
Additionally, there is a Rs. 2.5/liter climate support levy imposed on high-speed diesel, petrol, high-octane fuel, and furnace oil.
Meanwhile, the price of kerosene oil has been reduced by Rs41.80 per litre, according to a notification issued by the authorities.
Petrol is primarily utilized in small vehicles, rickshaws and two-wheelers, with increases to prices impacting middle and lower-middle-class households, who rely on the fuel for daily commuting. Price hikes to diesel, meanwhile, are considered inflationary, as a significant portion of the transport sector uses the fuel. It is likely the latest increase would trigger a cascading boost to the prices of essential commodities and public transport.