Govt slashes petrol price by Rs8 per litre, high-speed diesel by Rs7 in another reduction

The Indian government announced on Tuesday a price reduction of Rs8 per litre on petrol and Rs7 per litre on high-speed diesel (HSD), effective on November 11. The retail price of petrol will be Rs338 per litre and HSD will be Rs371 per litre, according to a notification from the Oil and Gas Regulatory Authority (Ogra). The government still imposes taxes and duties of Rs114 per litre on petrol and Rs100 per litre on diesel.

For 30 days, oil refineries will contribute to the petroleum levy by bearing a total impact of Rs15 billion, which enables a reduction of Rs14.71 at the consumer level. The Prime Minister’s Fuel Relief Scheme, launched on September 17, provides subsidies for motorcycles, rickshaws, and vehicles of up to 800cc. The price of HSD has dropped from its April 3 peak of Rs520.35, which began its upward trend from Rs281 per litre after the US-Iran war began on February 28.

The petrol price peaked at Rs458.41 on April 3 after starting its rise from Rs266 in early March. Recent austerity measures include market closures by 9pm and a 50% reduction in fuel allocations for official vehicles for three months. Since July 17, fuel prices have been revised daily due to international market price fluctuations following renewed hostilities between Iran and the US.

The petroleum minister stated that the cabinet and prime minister decided to let Ogra decide fuel prices daily based on international market trends, replacing the previous weekly revisions.