What happened
The government on Friday reduced the price of petrol by Rs4 per litre while keeping the price of high-speed diesel (HSD) unchanged for the next pricing period, according to a notification issued by the Ministry of Energy’s Petroleum Division.
The ex-depot price of motor spirit, or petrol, was lowered to Rs377.78 per litre from Rs381.78 per litre. High-speed diesel was retained at Rs380.78 per litre. The revised prices take effect from 6 June 2026, for the week ending 12 June.
Dawn reported that the government made adjustments in taxes and other levies to hold the diesel price, which is otherwise considered on the higher side. The price of diesel has come down from a peak of Rs520.35 recorded on 10 April; it is treated as the most inflationary fuel because of its extensive use in freight transport.
Why it matters
The cut is the fourth consecutive weekly reduction in the petrol price, with a cumulative decline of about Rs37 per litre. The previous week, the government announced a reduction of Rs22 per litre in the prices of petrol and high-speed diesel. Both fuels had been at about Rs415 per litre from 9 May, when the government raised petrol and diesel prices by Rs14.92 and Rs15 per litre.
The government is currently charging about Rs100 per litre on HSD in the form of customs duty, petroleum levy and climate support levy, besides the inland freight equalisation margin, while the total tax on petrol stands at about Rs125 per litre, including petroleum levy, customs duty and the climate levy. Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared with only about 10,000 tonnes of monthly demand for kerosene.
The change follows the price reduction KhabarWire reported here.
