The prices of major petroleum products, including petrol and high-speed diesel (HSD), are anticipated to decrease by Rs. 2 to Rs. 3 per litre starting November 1, following a slight reduction in global oil prices.
According to sources, the average international prices of petrol and HSD have decreased by approximately $1.5 and $2.5 per barrel, respectively, over the past fortnight. Based on the final exchange rate calculations and current tax rates, petrol prices are projected to drop by Rs3 per litre, while HSD prices are expected to decrease by Rs2.30 per litre.
The new prices will be implemented after the government issues an official notification.
Officials reported that the average price of petrol in the international market has fallen to about $76 per barrel from $77.5 per barrel, while HSD has declined to approximately $84 per barrel from $86.5. During this period, the import premium on petrol and HSD remained stable at $8.7 and $5 per barrel, respectively, and the exchange rate held steady.
Currently, the ex-depot price of petrol is Rs243.03 per litre, and HSD is Rs251.29 per litre. Earlier, on October 15, the government increased the price of diesel by Rs5 per litre, while maintaining the petrol price at Rs247.03 per litre until the end of the month. This was the first increase in petroleum product prices in three months, following a consistent decline due to falling international market prices.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, significantly impacting the budgets of middle- and lower-middle-class households. HSD, widely used in the transport sector, is considered inflationary as it powers heavy transport vehicles, trains, and agricultural machinery, affecting the prices of vegetables and other essentials.
Currently, the government levies approximately Rs76 per litre in taxes on both petrol and HSD, comprising Rs60 per litre in Petroleum Development Levy (PDL) and Rs16 per litre in customs duty. Additionally, about Rs17 per litre is allocated to distribution and sale margins for oil companies and their dealers.
