Govt approves Rs1.34/litre dealers’ margin hike on petrol, Diesel

MG News | August 21, 2026 at 02:16 PM GMT+05:00

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August 21, 2026 (MLN): The government has approved an increase in Dealers' Margin on petroleum products, i.e., Motor Spirit (MS) and High-Speed Diesel (HSD), by Rs1.34 per litre, based on the annual National CPI for 2023-24 and 2024-25, with a floor of 5% and a ceiling of 10%.

The decision removes the earlier pre-condition requiring achievement of a digitization target, which had been placed by the Economic Coordination Committee (ECC) vide Case No. ECC-207/28/2025 dated December 9, 2025, and by the Cabinet vide Case No. 212/26/2025 dated December 23, 2025.

The digitization target date has now been set as March 23, 2027.

The increase in dealers' margin will take effect upon ratification by the Cabinet.

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