Petrol may fall below Rs300 in coming review
Petrol and high-speed diesel (HSD) prices are projected to fall below Rs300 per litre in the coming review, thanks to a significant drop in global oil rates and the rupee’s appreciation. The anticipated per-litre decrease of up to Rs20 in HSD and Rs38 in petrol would be the most substantial single drop in fuel prices. However, the caretaker government can decide otherwise, particularly in the case of high-speed diesel, which presently carries the petroleum development levy of Rs50 per litre compared to Rs60 on petrol. The government aims to charge about Rs869 billion in levy on petroleum products during the current fiscal year’s budget target and commitments made with the International Monetary Fund (IMF). If it goes through, this will be the second time in a row that the caretaker government is reducing petroleum prices after three fortnightly increases. Between Aug 15 and Sept 15, petrol and high-speed diesel prices had risen by Rs58.43 and Rs55.83 per litre, respectively, to historic highs of Rs331-333 per litre at the retail stage.