The government announced a reduction in fuel prices on Saturday. Petrol prices will be cut by Rs1 per litre and high-speed diesel (HSD) by Rs4 per litre for the next fortnight.
The Finance Division announced the following adjustments made by the Oil and Gas Regulatory Authority in response to recent shifts in the international oil market.
According to the release, the new petrol price is now Rs256.13 per litre, while HSD has been adjusted to Rs263.95 per litre. Additionally, the prices of light diesel oil (LDO) and super kerosene oil have been reduced to Rs155.81 and Rs171.65 per litre, respectively, with reductions of Rs5.25 for LDO and Rs3.2 for kerosene.
Before this adjustment, informed sources had predicted a potential reduction in the ex-depot prices based on international market trends. It was anticipated that petrol could decrease by Rs2-2.50 per litre and HSD by approximately Rs9 per litre by February 15. Similarly, kerosene and LDO prices were expected to drop by Rs3.45 to Rs5 per litre, correlating with a decline in Brent crude prices by $2 per barrel over the last fortnight.
The international market analysis indicated a decrease of around $3 per barrel for HSD and 90 cents per barrel for petrol. Additionally, the ex-refinery costs for kerosene and LDO saw declines, with the import premium on petrol dropping from $8.8 to $7.75 per barrel while remaining steady for diesel.
As of February 29, the recalculations suggested a decrease of about Rs9 per litre in HSD, Rs2.50 in petrol, Rs3.50 in kerosene, and approximately Rs5 in LDO.
The latest rates post-adjustment list the ex-depot petrol price at Rs257.13 per litre and HSD at Rs267.95 per litre. Despite the official rate for kerosene being Rs174.85 per litre, it typically sells for Rs300-350 per litre in the market.
