Overview
- The government announced the fuel cuts on Friday and set ex-depot petrol at Rs299.50 per litre and high-speed diesel at Rs311.47 per litre to pass on falling international oil prices.
- The Petroleum Division sharply reduced the petrol petroleum levy by Rs40.49 per litre to Rs66.25 while raising the diesel levy by Rs19.71 per litre to Rs72.97 as part of the price change.
- Officials also cut jet fuel by Rs56.97 per litre and lowered kerosene, and transport groups immediately trimmed goods freight rates by about 15 percent.
- Analysts and some outlets note petrol still sits roughly Rs16.24 per litre above pre-conflict levels and warn that past fare and goods-price hikes may not fully reverse without firm enforcement.
- The government said it used about Rs129 billion from savings and development-budget adjustments to cushion consumers and will watch levy receipts and global oil and exchange-rate moves to guide future revisions.