The escalation in the Middle East might soon affect global markets, potentially raising petrol and high-speed diesel prices in the international market. Starting Monday, prices will climb by Rs2.50 and Rs8.50 per litre. This rise comes despite reduced import costs and a stronger exchange rate.
Sources report a $4 and $4.50 increase per barrel for petrol and diesel, respectively. Consequently, petrol prices could rise by up to Rs2.80, with diesel following closely at an increase of up to Rs8.50 per litre.
The import premium for petrol has fallen by nearly 21%, down to $10.7 per barrel, and the rupee has appreciated by 40 paisa. These factors might lead to an estimated increase of Rs2.80 per litre over the current petrol price of Rs289.41.
Conversely, diesel prices in the international market have surged, maintaining an import premium of $6.50 per barrel. Adjustments based on the final exchange rate could push diesel prices up by Rs8 to Rs8.50 per litre from the current Rs282.24.
Officials indicate a recent $4 rise in petrol prices per barrel, reaching $98.5, while diesel rose by $4.50 to $102.9. Despite these hikes, the government previously increased petrol prices by Rs9.66 per litre and decreased diesel by Rs3.32 for the period ending April 15.
The government enforces an Rs60 per litre petroleum levy on both fuels, the highest allowed by law. This measure aligns with commitments to the International Monetary Fund to collect significant revenue through the petroleum levy during this fiscal year. About Rs475 billion has been collected, with expectations to exceed the revised target of Rs920 billion by June.
Currently, the petrol and diesel tax is approximately Rs82 per litre.
