Diesel price cut, petrol steady as govt raises freight margin

For the third time in two months, the government on Thurs­day did not pass on the full impact of lower international oil prices to consumers and kept the price of petrol unchanged and reduced that of high-speed diesel by Rs2 per litre for the current fortnight ending May 31. The government incre­ased the Inland Freight Equalisation Margin (IFEM) on both petrol and diesel to clear about Rs34 billion loss to the oil industry owing to a tax loophole in the Finance Bill 2024-25. In a late-night announcement, the Ministry of Fina­nce said the Oil and Gas Regulatory Authority (Ogra) had reviewed and adjusted prices for petroleum products in view of the fluctuations in the international market. The ex-depot price of high-speed diesel was reduced by Rs2 per litre to Rs254.64 per litre for the current fortnight from Rs256.64.