On Sunday evening, the government stated that the price of gasoline would be reduced by Rs3.05 per litre and that the price of high-speed diesel would be raised by Rs8.95 per litre.
The new prices will take effect on August 1, 2022, according to a statement released by the Finance Ministry. Kerosene (SKO) has seen a price increase of Rs. 4.62 per litre, while Light Diesel has had a price increase of Rs. 0.12 per litre.
Fuel will now be sold for Rs227.19 per litre as a result of the pricing revisions. Previously, the price of gasoline in the country was Rs230.24 per litre. Now, a litre of high-speed diesel will cost Rs 244.95 in India. High-Speed Diesel was previously available for Rs 236 per litre.
Kerosene oil, on the other hand, would now cost Rs201.07 per litre after a rise of Rs4.62 from the previous price of Rs196.45 per litre.
The price of light diesel oil decreased somewhat by Rs0.12, and it is now being sold for Rs191.32 per litre as opposed to the previous price of Rs191.44 per litre.
The notification states that the modifications were made in response to a drop in the price of petroleum products on the world market.
According to the statement, “The government has decided to revise the existing prices of petroleum products to pass on the impact to the consumers due to the fluctuation in petroleum prices in the international market and exchange rate variations.”
According to WASIM IQBAL, the federal government decided on Sunday to increase the petroleum levy (PL) rates up to Rs 10 per litre and dealer margin in a fortnightly review of petroleum prices starting on August 1, 2022, instead of passing on the full impact of the decrease in petro prices as recommended by the Oil and Gas Regulatory Authority (OGRA).
The price of PL for gasoline has increased from Rs. 10 to Rs. 20 per litre. For gasoline, the dealer margin has increased from Rs. 4.90 to Rs. 7 per litre. A reduction of Rs 13.05 per litre had been suggested by the regulator. However, the government decided to simply lower the price per litre by Rs 3.05. In contrast to the OGRA’s suggested price of Rs 217.19 per litre, the government announced Rs 227.19 per litre.
High-speed diesel (HSD) now carries a PL rate of Rs. 5 to Rs. 10 per litre. OGRA had suggested raising the price of HSD by Rs 3.95 per litre, but the finance division opted to raise it by Rs 8.95 per litre by adding updated PL. In contrast to the proposed rates of 239.95 per litre, the government declared a price of Rs 244.95 per litre with effect from August 1–15.
Kerosene oil’s (SKO) PL cost has also gone up from Rs 5 to Rs 10 per litre. In contrast to the recommended price of Rs. 196.07 per litre, the new pricing of SKP has been set at Rs. 201.07. The government hiked the price per litre by Rs 4.62 despite the regulator’s recommendation to cut it by 0.38 paisa.
Similar to that, PL was raised from Rs. 5 to Rs. 10 per litre to increase the cost of light diesel oil (LDO). Compared to the OGRA’s proposed price decrease of Rs 5.12 per litre, the price has been cut by 12 paisa.
The oil and gas regulator calculated PL prices based on the most recent PL rates, RS 750 billion in allocated PL, and no sales tax. With effect from August 1, the prices of POL must be passed on to customers in accordance with the government’s agreement with the IMF.