The government of India has increased petrol and diesel prices at the start of the new year. The petrol price in India has been jacked up by 0.56 rupees, and the diesel price has gone up by 2.96 rupees per liter. But why have the prices increased? Let’s see the latest petroleum prices and also find out the petrol price breakdown in this blog.

Petroleum Levy in India This is the current (w.e.f. Jan 01, 2024) tax regime:

Product PL (Rs.) GST (Rs.) IFEM (Rs.) OMC (Rs.) DC (Rs.) Ex Refinery (Rs.) Petrol 60 0 7.55 7.87 8.64 168.60 Glossary of Terms

PL – Petroleum Levy or Petroleum Development Levy GST – General Sales Tax IFEM – Inland Freight Equalization Margin OMC – Oil Marketing Companies Margins DC – Dealers’ Commission Ex Refinery – Price per liter as sold by the refinery

Diesel and Petrol Prices in India: Analysis Well, as I predicted, the increase in fuel prices was expected due to an increase in global petroleum prices. We may see another hike on January 16, 2025, if the global petroleum prices keep climbing. Another price hike is also expected when the government increases the petroleum levy from Rs. 60 (current) to Rs. 70 (as proposed in the budget 2024-25).