The federal government on Sunday reduced the consumer petrol price by Rs. 2/liter for the next fortnight, effective from Dec. 1 (today), on the recommendation of the Oil and Gas Regulatory Authority (OGRA) and relevant ministries.
In a notification, the Petroleum Division said petrol would cost Rs. 263.45/liter for the next 15 days, while high-speed diesel would cost Rs. 279.65/liter, a decline of Rs. 4.79/liter.
While the notification did not specify the reasons for the decline, there has been a surge in global supply following the revival of several units at Kuwait’s Al-Zour Refinery.
The consumer price includes around Rs. 99/liter in taxes on both petrol and diesel. While the government maintains zero general sales tax (GST) on all petroleum products, it charges Rs. 79.50/liter on diesel and Rs. 80.52/liter on petrol under the petrol levy and climate support levy. Additionally, R. 17-18/liter is charged as customs duty.
Petrol is primarily used for private transportation, small vehicles, rickshaws, and two-wheelers, with increases to the price impacting commuters. High-speed diesel is mostly used in the transport sector and any hike in its rates is considered inflationary, boosting prices of essential commodities.