The government’s adjustment of freight charges and oil company margins has reduced the promised relief on petroleum prices. Although a reduction in petrol and diesel prices was announced, consumers received less benefit due to these adjustments.
Increased Freight Charges on Petrol
According to official documents, freight charges for petrol rose by Rs 1.42 per litre, bringing the total freight cost to Rs 5.79 per litre from the previously set Rs 4.37 per litre on February 1. This adjustment effectively reduced the announced price relief for consumers.
Despite the increase in transport costs, the petroleum levy on petrol remains unchanged at Rs 60 per litre. Additionally, the margins for Oil Marketing Companies (OMCs) and dealers also stayed steady at Rs 7.87 per litre and Rs 8.64 per litre, respectively.
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Diesel Price Adjustments
Similarly, freight charges and margins on high-speed diesel (HSD) have been raised. Freight charges increased by Rs 0.27 per litre, rising from Rs 2.65 to Rs 2.92 per litre. Additionally, the extra margin on diesel went up by Rs 0.23 per litre.
Reduced Relief for Consumers
These adjustments came just one day after the government announced reductions in petroleum prices. Petrol prices were initially cut by Rs 1 per litre, while high-speed diesel saw a reduction of Rs 4 per litre. However, the increase in freight charges and other costs diminished the full effect of the announced price cuts.
Impact on Consumers and Businesses
Consumers are now paying more than they anticipated, as the adjusted charges offset the relief measures. These price changes also impact businesses dependent on fuel, such as transportation and logistics companies, leading to higher operating costs.
What Lies Ahead?
The government’s decision to adjust costs while announcing price cuts could create dissatisfaction among consumers. As petroleum prices remain a critical factor in determining overall inflation, any increase in costs, even marginal, could have broader economic consequences. Moving forward, consumers and businesses will need to remain vigilant about further adjustments in petroleum pricing structures.
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