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Petrol and Diesel Prices Expected to Drop from August 1
Petrol and diesel prices are set to decrease by Rs3 and Rs8.50 per litre respectively from August 1. Lower international prices and reduced import premiums bring some relief.
ND
by News Desk
2024-07-27
Petrol and Diesel Prices Expected to Drop from August 1

In a welcome respite for consumers, the prices of petrol and high-speed diesel (HSD) are expected to drop by approximately Rs3 and Rs8.50 per litre respectively from August 1, after two consecutive increases. This anticipated decline is attributed to a decrease in international market prices and import premiums.

 

According to informed sources, the international market witnessed a reduction in prices for these major products by about $2 to $3 per barrel over the past fortnight. Consequently, based on the final calculations and prevailing tax rates, the price of petrol is projected to fall by Rs2.90, while HSD could see a reduction of Rs8.50 per litre.

 

Officials report that the average price of petrol in the international market decreased from $89.50 to $87.50 per barrel. Similarly, the price of HSD fell from $96.93 to $94 per barrel. The import premium also saw a decline, dropping to $8.80 from $9 per barrel for petrol and to $5 from $6.50 per barrel for HSD. Exchange rate movements remained stable during this period.

 

Currently, the ex-depot price of petrol is Rs275.60 per litre, and that of HSD is Rs284 per litre. If the government does not adjust the petroleum levy, the new rates are expected to bring petrol prices slightly above Rs272 and HSD close to Rs275 per litre.

 

Petrol, primarily used in private transport, small vehicles, rickshaws, and two-wheelers, significantly impacts the budgets of middle- and lower-middle-class households. HSD, predominantly used in the transport sector for heavy vehicles like trucks, buses, and tractors, influences the inflation rate, particularly affecting the prices of essential commodities.

 

Despite the anticipated drop in petroleum prices, this decrease is rarely reflected in public transportation fares or the prices of essential goods.

 

Recent price changes saw an increase of Rs7.45 and Rs9.56 per litre for petrol and HSD respectively on June 30, followed by another hike of Rs9.99 and Rs6.18 per litre on July 16. This resulted in a cumulative rise of Rs17.44 and Rs15.74 per litre for petrol and diesel respectively during the current month. Conversely, between May 1 and June 15, prices had reduced by approximately Rs35 and Rs22 per litre for petrol and diesel.

 

Currently, the government imposes about Rs78 per litre in taxes on both petrol and HSD. While GST is zero on all petroleum products, the petroleum development levy (PDL) of Rs60 per litre continues to impact the masses.
Tagged:

Petrol

diesel

FuelPrices

EconomicRelief

MarketUpdate
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