Petroleum product prices will likely remain largely stable through December 15 due to minimal fluctuations in global markets and a slight rupee appreciation.
Sources indicate that average international petrol and high-speed diesel (HSD) prices increased marginally in the last fortnight. The import premiums for these fuels stayed constant, with the rupee experiencing minor gains.
Recent calculations up to November 28 suggest a potential rise of about Rs3 per litre in petrol, HSD, and kerosene prices, despite a brief drop in global prices during the month’s final days.
An official from the Oil and Gas Regulatory Authority (OGRA) noted that the anticipated price increase might not exceed Rs3 per litre, as adjustments could be made within the inland freight equalisation margin (IFEM), which aims to standardize prices nationwide.
Currently, the ex-depot petrol price is Rs248.38 per litre, and HSD is Rs255.14 per litre. Petrol predominantly fuels private transport and significantly impacts the budgets of the middle and lower-middle classes.
The government currently imposes approximately Rs76 per litre in taxes on both petrol and HSD. Despite no general sales tax on these products, a petrol development levy (PDL) of Rs60 per litre is applied to both fuels, impacting consumers.
Additionally, about Rs16 per litre customs duties are levied on local and imported petrol and HSD. Oil companies and dealers receive around Rs17 per litre in distribution and sales margins.
The government imposes a Rs50 per litre tax on lighter diesel and high-octane blending components in luxury vehicles.
