Expected Reduction of Rs10 in Petrol and Diesel Prices

Petrol prices are anticipated to decrease by approximately Rs9-10 per liter on January 15, driven by lower international prices, exchange rate gains, and reduced premiums.

High-speed diesel (HSD) is also expected to become cheaper by around Rs2 per liter.

International market fluctuations have contributed to the decline in petroleum product prices, with petrol dropping by over a dollar and HSD becoming cheaper by about $1.10 per barrel.

The rupee has strengthened against the dollar, further contributing to the price reduction. With the government already reaching the maximum petroleum levy limit, petrol prices are estimated to be cheaper by at least Rs9 per liter, and HSD by Rs2 per liter.

Kerosene and light diesel oil prices are also expected to decrease by about Rs2 per liter each. Petroleum and electricity prices have played a significant role in inflation, and the government aims to collect over Rs950 billion in petroleum levy by the end of June.

The current tax on petrol and HSD is approximately Rs 8.2 per liter