Amid the rising inflation woes, the government is anticipated to slash the prices of petroleum products ahead of the federal budget 2023-24, which is set to be announced on June 9, as per industry insiders’ reports to The News.
They expect a reduction of Rs10 per litre in petrol prices, effective from June 1, owing to a decrease in the ex-refinery price.
The industry sources noted a dip in the ex-refinery petrol price by Rs10-12 for the following fortnight. However, only up to Rs10 per litre relief is feasible due to the exchange rate adjustment.
An industry official stated, “The ex-refinery price of diesel is expected to fall by Rs4-5 per litre for the next review, and the government may transfer this reduction in the upcoming fortnightly review.”
In the last price revision, the diesel price was reduced by Rs30, dropping from Rs288 to Rs258 per litre. Likewise, the petrol price was decreased by Rs12, moving from Rs282 to Rs270 per litre.
Despite no significant decrease in global oil prices, which had a slight increase, and no considerable changes in the interbank market’s exchange rate during the fortnight, officials reported.
The government has been grappling with demands to curb petroleum prices, which have consistently increased recently. While the recent decrease in global oil prices has offered some respite, maintaining lower prices remains challenging for the government.
The updated petroleum prices are due to be announced on May 31.
