Fuel prices may finally come down after two months

The prices of high-speed diesel (HSD) and petrol are estimated to be reduced by about Rs5-19 per litre for the Oct 1-15 period, in what could be the first decrease in two months, mainly because of the rupee’s appreciation. The prices of the two essential fuels were last cut in mid-July when petrol was reduced by Rs9 per litre to Rs253 and diesel by Rs7 per litre to Rs253.50. Sources told Dawn that based on the existing tax rates and other overheads, the petrol price could come down by Rs15-19 per litre in the upcoming review because of about a 2pc reduction in its international price from $101 to $99 per barrel and around Rs10.5 rise in the rupee’s value against the US dollar. The calculation is based on the actual impact in the first 12 days of September and estimates for the last two days. Petrol is mainly used in private transport, small vehicles, rickshaws and motorcycles and directly affects the budget of the middle- and lower-middle classes.