Govt jacks up fuel prices by staggering Rs20 per litre

The government on Tuesday jacked up the prices of petroleum products by a staggering Rs20 per litre with immediate effect (August 16), owing to an increase in international market during the last fortnight.

In a statement, the government’s finance division announced that the cost of High Speed Diesel (HSD) was being increased by Rs20 to Rs293.40 per litre while that for petrol was hiked by Rs17.50 to Rs290.45 per litre.

It said the new rates were effective immediately.

Earlier, petrol was being sold at Rs272.95 per litre whereas diesel at Rs273.40 per litre.

Petrol is used in motorbikes and cars whereas diesel is widely used in transport and agriculture sectors.

The government is currently charging the highest-ever rate of petroleum levy from the consumers.

In early August 2023, the government had raised petrol and diesel prices by nearly Rs20 per litre each, bringing local prices to approximately Rs273 per litre. This move was necessitated by the International Monetary Fund (IMF) loan conditions, leaving the government with little choice but to pass on the burden of rising international commodity prices to local consumers instead of subsidising to ease the pressure on businesses and households during challenging times.