Due to global oil market fluctuations, the price of high-speed diesel may decrease by Rs3.90 per litre starting December 16. Diesel, predominantly utilized in transport and agriculture, could have a deflationary effect on consumer prices.
Conversely, a petrol increase of 81 paise per litre is expected as the government prepares its bi-weekly rate revision on December 15. The anticipated inland freight equalisation margin is Rs7.92 for petrol and Rs4.15 for high-speed diesel.
Should petrol prices rise by 81 paise, the new rate would be Rs252.91 per litre. Primarily used in motorcycles and passenger cars, petrol contrasts with high-speed diesel, which is poised to drop from Rs258.43 to Rs254.53 per litre.
Kerosene oil, essential for cooking and heating in remote areas, will decrease by Rs3.97 to Rs161.01 per litre. Meanwhile, light diesel oil, used chiefly in industries, may see a reduction of Rs3.55, setting the price at Rs148.18 per litre.
Internationally, the premium for petrol has decreased to $8.84 per barrel from $9.80 in the last review ending November 30.
This downward adjustment in petroleum prices could boost consumption, aiding the government in achieving its monthly petroleum levy collection target. In November, petroleum levy revenues reached Rs110 billion, a 19% increase year over year.