Good news for diesel users! Starting from December 16, the price of diesel has been reduced by Rs14 per litre, in line with global oil price changes. The new price for diesel will be Rs265.65 per litre, down from Rs279.65 per litre. This drop is expected to bring some relief, especially for those in the transport and agriculture sectors, where diesel plays a vital role.
However, there’s no change for petrol. The price remains at Rs263.45 per litre, meaning no immediate relief for motorists. The decision to maintain the petrol price comes despite the growing use of petrol in Punjab, especially after the CNG ban at local stations.
The initial forecasts had suggested that diesel prices could drop by as much as Rs11.85 per litre, and petrol by around 36 paisas per litre, but it’s clear that the government chose to make a more moderate adjustment.
Earlier this month, the Economic Coordination Committee (ECC) approved a small margin increase of Rs2.56 per litre for both petrol and diesel, aimed at boosting the profitability of oil marketing companies and their dealers.
Even though the General Sales Tax (GST) is still zero on petroleum products, consumers are still paying hefty petroleum levies. In December’s first half, the petroleum levy on diesel was Rs78 per litre, and Rs82 per litre for petrol, which also includes a climate support levy of Rs2.50 per litre.
The government has collected about Rs1.161 trillion in petroleum levies for fiscal year 2024-25 and expects that number to increase by 27% to Rs1.470 trillion in the current fiscal year.
LNG Price Reduction
In other news, the Oil and Gas Regulatory Authority (OGRA) has announced a decrease in the prices of re-gasified liquefied natural gas (RLNG) for December.
For Sui Northern Gas Pipelines Limited (SNGPL), the new RLNG transmission price is $10.9186 per MMBtu, and the distribution price is $11.8280 per MMBtu, reflecting a drop of about 4.5%. Similarly, for Sui Southern Gas Company Limited (SSGCL), the transmission price is now $9.4741 per MMBtu, and the distribution price is $10.7767 per MMBtu, marking a 5.9% decrease. OGRA explained that the price reduction is due to a drop in the Delivered Ex-Ship (DES) price, in line with the government’s guidelines. This decrease could provide some relief for gas consumers in the coming months.