Fuel: Diesel Price Rises from Rs 58.95 to Rs 64.80 per Liter

The price of diesel has been increased from Rs 58.95 to Rs 64.80 per liter, marking a 10% hike. This is another blow to consumers. Conversely, the price of petrol remains unchanged at Rs 58.45 per liter. This decision from the Petroleum Pricing Committee comes amid rising global prices and a growing deficit in the price stabilization mechanism.

During a meeting on Tuesday, March 24, 2026, the Petroleum Pricing Committee (PPC) decided to raise diesel prices from Rs 58.95 to Rs 64.80 per liter, representing a maximum increase of 10%. Meanwhile, the petrol price remains at its current level. In a statement released on the evening of March 24, the State Trading Corporation (STC) explained that this decision is primarily due to the concerning situation of the Price Stabilisation Account (PSA) for diesel, which is showing a deficit estimated at Rs 2.3 billion. “Faced with this imbalance, the committee had no choice but to adjust pump prices while limiting the increase to 10% to mitigate the impact on consumers and businesses.”

The calculations from the PPC indicate that the benchmark price of diesel has now reached $173.34 per barrel, with an exchange rate of Rs 46.9 per dollar. This translates to a theoretical retail price increase of 40.70%, or nearly Rs 24 more per liter. However, the capping mechanism has helped contain this rise.

On the petrol side, the situation is different. Although the benchmark price, set at $946.39 per metric ton, suggests a potential increase of 18.78%, the PPC chose not to pass on this increase. “This decision is based on the positive balance of the PSA for petrol, which allows for absorbing fluctuations in international prices.” While this measure provides some relief for motorists, the diesel price hike is likely to have a ripple effect on transportation costs and consumer goods.