Petroleum prices may rise by up to Rs7 per litre from March 1

Petroleum product prices are expected to increase by Rs4.50 to Rs7 per litre from March 1 for the next fortnight ending March 15, following a slight rise in international oil prices.

Based on existing tax rates, the ex-depot price of petrol is estimated to increase by about Rs4.50 per litre, HSD by Rs4.70, LDO by Rs7 and kerosene by Rs5, subject to final calculations.

Officials said benchmark crude rates have moved up during the week amid regional tensions, affecting the pricing of petrol, high-speed diesel (HSD), kerosene and light diesel oil (LDO).

The current ex-depot price of petrol stands at Rs258.17 per litre, while HSD is priced at Rs275.70 per litre. Kerosene and LDO are priced at Rs180.53 and Rs161.72 per litre, respectively.

The government is currently charging around Rs105 per litre in taxes on petrol and about Rs98 per litre on HSD, including petroleum levy, customs duty and climate support levy. Distribution and dealer margins amount to around Rs17 per litre.

Petrol and HSD are the main revenue-generating products, with combined monthly sales averaging between 700,000 and 800,000 tonnes, compared to around 10,000 tonnes for kerosene.

During FY25, the government collected Rs1.161 trillion through the petroleum levy and has projected collections of Rs1.470 trillion for the current fiscal year.