Prices for major petroleum products, including petrol and high-speed diesel (HSD), are expected to decrease by Rs2 to Rs3 per litre starting November 1, following a slight reduction in global prices.
Informed sources indicate that average international prices for petrol and HSD have fallen by approximately $1.5 and $2.5 per barrel, respectively, over the last fortnight. Based on final exchange rate calculations and current tax rates, petrol prices are projected to decrease by Rs3 per litre, while HSD prices are expected to drop by Rs2.30 per litre.
Officials noted that the average price of petrol in the international market has declined to around $76 per barrel, down from $77.5, while HSD prices have dropped to about $84 per barrel from $86.5.
During this period, the import premium for petrol and HSD remained relatively stable at $8.7 and $5 per barrel, respectively, and the exchange rate has also remained unchanged.
Currently, the ex-depot price for petrol is Rs243.03 per litre, while HSD is priced at Rs251.29 per litre. Earlier, on October 15, the government raised diesel prices by Rs5 per litre but kept petrol rates unchanged at Rs247.03 until the end of this month. This marked the first increase in petroleum prices in three months, following a trend of declines due to falling international prices.
Petrol is predominantly used in private transport, small vehicles, rickshaws, and two-wheelers, significantly impacting the budgets of middle- and lower-middle-class households. In contrast, HSD is primarily used in the transport sector, particularly in heavy vehicles, trains, and agricultural machinery, contributing to inflation as it affects the prices of essential goods, including vegetables.
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Currently, the government imposes approximately Rs76 per litre in taxes on both petrol and HSD, which includes Rs60 per litre in Petroleum Development Levy (PDL) and Rs16 per litre in customs duty. Additionally, around Rs17 per litre is allocated for distribution and sale margins for oil companies and their dealers.
