Petrol and diesel prices are anticipated to decrease by Rs5-6 per litre
Starting September 1, the prices of petrol and high-speed diesel (HSD) are expected to fall by approximately Rs5-6 per litre, marking the third consecutive fortnight of price reductions. This anticipated drop comes as a result of lower international oil prices.
Recent reports indicate that in the past two weeks, the global price for petrol and HSD has decreased by $2 to $2.30 per barrel. With current exchange rates and tax structures, this decrease is likely to be reflected as a Rs5 to Rs5.50 drop in domestic fuel prices.
Specifically, the average international price of petrol fell from about $82.50 to $80.40 per barrel, while HSD prices dropped from $90.30 to $88 per barrel. Additionally, the import premium on petrol has decreased by 50 cents per barrel to $8.50, though the premium on HSD remains unchanged at $5 per barrel. The local currency has also strengthened slightly, appreciating by 25 cents against the US dollar in the same period.
The government has set a maximum limit for the petroleum levy at Rs70 per litre in the finance bill, with an aim to collect Rs1.28 trillion in the upcoming fiscal year, up from Rs1.019 trillion collected last year. Currently, taxes on petrol and HSD include approximately Rs60 per litre as Petroleum Development Levy (PDL) and an additional Rs18 per litre in customs duties, totaling around Rs78 per litre in taxes.
These changes in fuel prices are expected to provide some relief to consumers, reflecting the fluctuations in the global oil market and domestic tax policies.
