The global crude oil market experiences continuous fluctuations, which directly impact local fuel prices. As a result, petrol and diesel rates in the domestic market keep varying frequently. This volatility has led to growing expectations from the public, with many hoping for a reduction in fuel prices. The rising cost of petrol and diesel significantly influences the prices of essential commodities, affecting daily expenses. However, recent reports indicate that the government has implemented a reduction in fuel prices, providing some relief to consumers.
Government Announces Reduction in Petrol and Diesel Prices
According to an official statement from the Ministry of Finance, the government has announced a reduction in fuel prices. Diesel prices have been lowered by Rs 5.31 per liter, while petrol prices have seen a minor decrease of Rs 0.50 per liter. Additionally, the price of kerosene has also been cut by Rs 3.53 per liter. This decision, taken ahead of Ramadan, comes as a significant relief for the general public struggling with inflation.
New Fuel Prices After the Reduction
As per the issued notification, petrol prices have now decreased by Rs 0.50 per liter, bringing the new cost to Rs 255.63 per liter. Similarly, the price of high-speed diesel has been reduced by Rs 5.31 per liter, setting the new rate at Rs 258.64 per liter. Meanwhile, kerosene oil prices have also dropped by Rs 3.53, now standing at Rs 168.12 per liter.
Taxation and Duties on Fuel Prices
The government imposes significant taxation on petrol and high-speed diesel (HSD). Currently, there is a petroleum development levy (PDL) of Rs 60 per liter, contributing to an overall tax of approximately Rs 76 per liter. While the general sales tax (GST) remains at zero, an additional customs duty of Rs 16 per liter is levied on both imported and locally produced fuel. These taxes play a crucial role in determining the final fuel prices for consumers.
Impact of Fuel Prices on Daily Life
Petrol is a crucial fuel for personal vehicles, motorcycles, rickshaws, and small transport. For middle and lower-middle-class households, any rise in petrol prices directly affects their budget, adding to financial hardships. The reduction in fuel prices, although minimal, provides a slight respite to consumers already dealing with economic challenges. However, continuous monitoring of global oil prices remains essential to ensure further stability in local fuel costs.
