The government raised the price of petrol by Rs13.18 per litre and that of high-speed diesel (HSD) by Rs13.80 on Friday.
Following the increase, the price of petrol stands at Rs310.71 per litre and HSD’s at Rs323.30.
The Petroleum Division’s press release notifying the increase said the new prices would be effective from June 11. The diesel price has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.
The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.
Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.
Under IMF conditions, the government doubled the climate support levy to Rs5 per litre with effect from July 1, while correspondingly reducing the petroleum levy. As a result, the petroleum levy on diesel currently stands at about Rs80 per litre.
On the other hand, the petroleum levy on petrol now stands at about Rs70 per litre, in addition to the Rs5 climate support levy.
The government is currently charging about Rs101 per litre on high-speed diesel (HSD) in the form of Rs16 per litre customs duty, in addition to the petroleum levy and climate support levy, as well as the inland freight equalisation margin.
Meanwhile, the total tax on petrol amounts to Rs95 per litre, including Rs20 per litre customs duty in addition to the petroleum levy and climate levy. The government is also charging about Rs21 per litre as petroleum levy on kerosene and about Rs16 per litre on light diesel oil.
Petrol and high-speed diesel (HSD) are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.