Petroleum prices likely to go up by Rs15

After offering relief to consumers in the last three revisions of oil prices, the government is now likely to raise the prices of high-speed diesel (HSD) and petrol by Rs9.84 per liter and Rs7.54 per liter, respectively, for the next fortnight starting from July 1. This possible increase is attributed to fluctuations in global oil prices. The government also plans to increase the rate of petroleum levy on these two products. If the government increases the rate of petroleum levy by Rs5, the price of petrol may go up by Rs12.54 and HSD by Rs14.84 per liter. The government is currently charging Rs60 per liter petroleum levy on petrol and diesel. HSD is widely used in transport and agriculture sectors. Therefore, an increase in its price will have inflationary effects on consumers. Consumers have been enjoying relief due to cuts in the prices of petroleum products.