The government has raised the prices of petrol and diesel starting Monday. Petrol is now more expensive by Rs8.36 per litre, and diesel costs Rs10.39 more per litre. These changes will last until July 15. The reason for the price increase is the rise in global fuel prices, caused by recent Israeli attacks on Iran.
The Finance Ministry said that the Oil and Gas Regulatory Authority checked the international market prices and decided to increase local fuel prices.
Diesel, which is used a lot by trucks, buses, tractors, and other heavy vehicles, went up by about four percent. It now costs Rs272.98 per litre instead of Rs262.59. Diesel price increases usually make the price of vegetables and other goods higher because many transport services depend on it.
Petrol, mainly used by cars, motorbikes, rickshaws, and small vehicles, went up by 3.3 percent, from Rs258.43 to Rs266.79 per litre. This price rise affects the daily budget of many middle- and lower-income families.
Right now, the government charges around Rs100 per litre as tax on both petrol and diesel. Starting July 1, a new climate support fee of Rs2.5 per litre was added. Even though there is no general sales tax on petrol and diesel, the government still collects Rs78 per litre as a petroleum development levy. This also affects the prices that people pay.
There is also a customs duty of about Rs19 per litre, whether the fuel is made locally or imported. Oil companies and their sellers get around Rs17 per litre as their profit and selling margin.
Comments are closed, but trackbacks and pingbacks are open.