Reasons for the recent increase in petrol and high‑speed diesel prices have emerged. Petroleum product prices were raised due to higher government taxes and an increase in the Inland Freight Equalization (IFE) margin. Despite a reduction in the ex‑refinery cost of both fuels, the government added Rs 26.77 per litre to the price of petrol and high‑speed diesel. Consequently, the petroleum levy rose to Rs 107.38 per litre. If the levy on petrol and the IFE margin on diesel had not been increased, the price hike would not have occurred. Sources indicate that after April 18, the ex‑refinery price of high‑speed diesel fell by Rs 3.44 per litre within a week, and the ex‑refinery price of petrol dropped by Rs 3.14 per litre during the same period, yet the government still raised the retail prices of both fuels by Rs 26.77 per litre.
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