The rupee’s rise will help lower the ex-depot petrol price for the next two weeks; but, the International Monetary Fund’s (IMF) condition, which seeks an increase in the petroleum levy (PL), may deprive consumers of this much-needed relief, according to source.
The government intends to evaluate petroleum product pricing by midnight on July 15 (today).
While the ex-depot price of high-speed diesel (HSD) has not changed significantly, the petroleum levy on it may increase its price for end users in the following two weeks.
According to the oil industry, international prices for petroleum products have risen in recent days, but because the domestic currency has appreciated against the dollar following the IMF’s approval of a $3 billion loan and the release of the first tranche of $1.2 billion, consumers may benefit from a drop in petrol prices.
According to the oil industry, the ex-depot price of petrol will fall to Rs251.92 per litre for the next two weeks, a Rs10.08 decrease from the current price of Rs262 per litre.
Meanwhile, the ex-depot price of HSD has risen by Rs3.66 to Rs264.16 per litre from its current price of Rs260.50 per litre.
Similarly, the ex-depot price of kerosene has increased by Rs0.73 per litre to Rs171.78, up from the existing Rs171.05 per litre.
The exchange rate has helped to reduce the ex-depot price of petrol while also maintaining the ex-depot price of diesel from rising.
The currency rate is showing an Rs8.42 per litre reduction, which could reduce the price of petroleum products down to Rs278.58 per litre for the next two weeks, compared to the current price of Rs286.99.
The government levies an Rs55 per litre petroleum charge on petrol, which was increased by Rs5 per litre in the most recent price review.
“It seems like the government may raise the PL to Rs60 per litre in the next price review under IMF conditions, which seek Rs60 per litre PL on petrol,” oil industry sources said.
The government charges Rs50 per litre PL for HSD, however, the IMF requires it to be hiked to Rs60 per litre.
Instead of increasing the PL by Rs10, the government might raise it by Rs5 per litre.
