Petrol price jacked up by Rs8.36 per litre to Rs266.79 for next fortnight

The Finance Division on Monday raised petrol prices by Rs8.36 per litre, attributing the hike to fluctuations in global crude oil markets. The new rate takes effect from July 1.

On June 16, 2025, petrol rose by Rs4.80 per litre and high-speed diesel by Rs7.95.

With the latest increase, petrol will now cost Rs266.79 per litre, up from Rs258.43. The price of high-speed diesel was also raised by Rs10.39, bringing it to Rs272.98 from Rs262.59 per litre, according to a notification.

International oil prices edged down on Monday as investors weighed easing Middle East risks and a possible OPEC+ output increase in August.

Both Brent and US crude oil benchmarks posted their biggest weekly declines since March 2023.

In another development, according to sources, the government has added a carbon levy of Rs2.50 per litre to the new fuel prices. The levy on petrol has been reduced to Rs75.52 per litre, while the levy on high-speed diesel has been set at Rs74.51 per litre.

The hike in the petroleum products prices comes a day after the Oil and Gas Regulatory Authority (Ogra) notified a 50% increase in fixed gas charges for domestic consumers for the fiscal year 2025-26, effective from July 1.

The government resets the fuel prices twice a month after looking at global oil prices and the exchange rate between the rupee and the dollar to decide the new rates.

This system helps make sure that changes in the cost of importing fuel are shared with consumers, so the country can keep its fuel supply running smoothly.

Petrol powers small vehicles, rickshaws, and bikes, making price hikes especially hard on middle- and lower-income households who depend on it for daily commuting.

In contrast, a substantial portion of the transport sector depends on high-speed diesel. Its price is considered inflationary due to its widespread use in trucks, buses, trains, and farm machinery, such as tractors and tube wells.

The increased cost of high-speed diesel directly contributes to the rising prices of vegetables and other essential food items.