Petroleum prices expected to drop for next fortnight

The prices of petrol and diesel are anticipated to drop by Rs3.5 and Rs7 per litre, respectively, for the fortnight ending May 31, according to estimates. 

This decline is attributed to a reduction in international market prices and a slight decrease in the import premium on petrol. However, these reductions are contingent on the tax rates remaining unchanged.

Informed sources indicated that the ex-depot price of petrol is expected to decrease by approximately Rs3.5 per litre, with a final adjustment to be calculated by May 15. 

Additionally, high-speed diesel (HSD) is projected to see a reduction of about Rs7 per litre.

The drop in petrol prices is primarily due to a $1.5 per barrel reduction in international petrol prices and a $3 per barrel decline in HSD prices over the past two weeks. 

Currently, the ex-depot price of petrol stands at Rs252.63 per litre, while HSD is priced at Rs256.64 per litre.

This adjustment in fuel prices is likely to impact private transport, particularly small vehicles, rickshaws, and two-wheelers, which are used extensively by the middle and lower-middle class.