The federal government has increased the petroleum levy (PL) on petrol by Rs4.62 per litre and on high-speed diesel (HSD) by Rs0.80, while the fuel price remains unchanged. The levy on High Octane Blending Component (HOBC) was also raised by Rs4.62 per litre. This pushes the total PL on petrol and HOBC from Rs79.62 to Rs84.27 per litre, while the PL on HSD has risen to Rs76.21 from Rs75.41.
In addition, a Climate Support Levy (CSL) of Rs2.50 per litre continues to be collected on petrol, HSD, and HOBC. Kerosene and light diesel oil also carry a PL of Rs20.36 and Rs15.84 per litre, respectively. Fuel prices are further affected by the Inland Freight Equalisation Margin (IFEM), which is set at Rs8.97 per litre for petrol and Rs7.25 for HSD.
Industry analysts say the move helps maintain government revenue but leaves consumers and transporters facing high fuel costs, despite falls in international oil prices.
Current rates of petroleum
Despite the increase in the petroleum levy, the government has kept retail fuel prices unchanged for the next fortnight. Petrol will remain at Rs253.17 per litre and HSD at Rs257.08 per litre until the end of January, according to a notification issued by the Petroleum Division.
In the previous fortnightly review, petrol prices had been reduced by Rs10.28 per litre and HSD by Rs8.57.
Petrol is commonly used by small vehicles, rickshaws, and motorcycles, making price changes especially relevant for middle and lower-middle-class households. High-speed diesel is widely used in heavy transport vehicles, agricultural machinery, and public transport, and its cost directly affects the prices of goods such as vegetables and other food items.
The government’s decision highlights the challenge of balancing revenue collection with keeping fuel affordable for consumers and transporters.
According to the latest updates, there has been no official announcement by the concerned department in regarding the increase or decrease in the prices of petroleum.
Also Read: Petrol, diesel prices announced for January fortnight
