The prices of petrol and high-speed diesel (HSD) are expected to decrease by approximately Rs5-6 per litre for the third consecutive fortnight, starting September 1, primarily due to a decline in international oil prices.
As per reports, the international market price for petrol and HSD fell by $2 to $2.30 per barrel over the last fortnight. Based on current exchange rates and tax structures, this translates to a projected reduction of Rs5 to 5.50 per litre in the domestic market.
The average international price of petrol dropped from around $82.50 to $80.40 per barrel, while HSD prices decreased from $90.30 to $88 per barrel during the same period.Â
The import premium on petrol also decreased by 50 cents per barrel to $8.50, while the premium on HSD remained steady at $5 per barrel. The local currency appreciated against the US dollar by 25 cents over the fortnight.
The government has set a maximum petroleum levy limit of Rs70 per litre in the finance bill, aiming to collect Rs1.28 trillion in the next fiscal year, compared to Rs1.019 trillion collected last year.Â
The government is currently charging about Rs78 per litre in taxes on petrol and HSD, with Rs60 per litre as Petroleum Development Levy (PDL) and an additional Rs18 per litre in customs duty.
