The prices of major petroleum products, petrol and high-speed diesel (HSD), are poised to witness a significant reduction by over Rs10 per litre each starting December 15 for the next two weeks. This notable drop is primarily attributed to a decline in the international market.
According to well-informed officials, the global prices of both HSD and petrol have experienced a nearly 5% decrease over the past fortnight. Concurrently, the rupee has marginally strengthened against the US dollar. These factors collectively contribute to a substantial decrease in domestic prices for consumers.
The officials indicate that HSD has become approximately $4 per barrel cheaper on average, declining from around $99.50 to $95.50. Similarly, the price of petrol has seen a decrease from $86.5 to $81.7.
The rupee’s gain against the dollar, improving from Rs285.5 to Rs284 as of December 1, further contributes to the overall reduction in fuel prices. During this period, the benchmark Brent oil dropped from $79 per barrel to $73.
As a result, it is estimated that HSD prices will decrease by at least Rs12 per litre, while petrol is expected to witness a minimum Rs10 per litre reduction. Additionally, kerosene and light diesel oil prices are anticipated to fall by Rs7 and Rs13, respectively.
It’s noteworthy that the government has already reached the maximum permissible limit of Rs60 per litre for the petroleum levy under the law. Despite a budget target of Rs869 billion for petroleum levy collection during FY24, as agreed with the IMF, there is optimism that the collection may surpass Rs950 billion by the end of June.
