Citizens may bear brunt of extra costs on fuel prices

For a third time in two months, the government is considering imposing additional costs — this time at the rate of Rs4.12 per litre — on the prices of petroleum products, a move that may deprive consumers of potential relief in prices due to be announced for the next fortnight today (Thursday). This has been proposed by the petroleum division to the Economic Coordination Committee (ECC) of the Cabinet. The impact of Rs4.12 per unit works out to be around Rs75 billion on an annual basis to be paid to oil marketing companies (OMCs), refineries and retail dealers to meet their demands. On top of this, the petroleum division has also recommended imposition of general sales tax on petroleum products at the rate of Rs3-5 per litre from July 1, through the finance bill 2025-26.