Petrol and high-speed diesel (HSD) prices are projected to fall by Rs. 8 to Rs. 10 per litre starting November 15 for the following two weeks, owing to decreased pricing in the international market.
According to informed officials, international prices for both HSD and gasoline have dropped in the last two weeks.
During the same period, however, the rupee declined against the dollar, limiting the benefit of reduced international pricing for consumers.
Petrol and Diesel Prices Decrease Globally
Officials stated that HSD had become roughly $9 per barrel cheaper on average, dropping from around $113 to $104 during the week, while petrol had decreased by a dollar from $91 to $90.
The rupee, on the other hand, fell in value versus the dollar by Rs. 6, falling from Rs. 280 to Rs. 286.
According to the law, the government has already achieved the maximum allowable level of Rs. 60 per litre in petroleum development levy (PDL).
In compliance with pledges to the International Monetary Fund (IMF), the government’s budget objective for the current fiscal year is Rs. 869 billion in PDL on petroleum products.
Despite a modest increase in petrol per litre rates and nearly unchanged rates at Rs. 50 per litre in the first quarter of the fiscal year.
In the first quarter ended September 30, 2023, total PDL collection surpassed Rs. 222 billion.
Rate of Inflation
However, fuel and electricity prices have been the primary drivers of the high rate of inflation recorded at 27 percent in October as measured by the consumer price index, and this is expected to be reinforced by a massive increase in gas prices beginning November 1.
On October 31, the government kept the price of gasoline and HSD unchanged.
Previously, between August 15 and September 15, gasoline and high-speed diesel prices rose by Rs. 58.43 and Rs. 55.83 per litre, respectively, to a historic Rs. 331 to Rs. 333 per litre at the retail stage until September 30.
Previous Petrol Prices
Following that, rates for gasoline and diesel were reduced by Rs. 52 and Rs. 26 per litre, respectively, with effect from October 1 and 16.
At the moment, the government levies a Rs. 80 per litre tax on both petrol and HSD.
Despite the fact that all petroleum products are exempt from GST, the government charges Rs. 60 per litre as PDL on both.
In addition, a Rs50 per litre charge is levied on high-octane blending components and 95RON gasoline.
However, the customs duty on petrol and HSD is approximately Rs. 19-Rs. 21 per litre. Gasoline and HSD are significant revenue generators.
Furthermore, it generates monthly sales of approximately 700,000-800,000 tons, compared to kerosene’s monthly demand of only 10,000 tons.
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