Fuel prices may drop amid global market decline

The prices of petrol and high-speed diesel (HSD) are expected to decline by Rs8 to Rs10 per litre each on Nov 15 for the next fortnight, mainly due to lower prices in the international market. Informed officials said that the international prices of both HSD and petrol had fallen over the past two weeks. However, the rupee depreciated against the dollar during the same period, reducing the benefit of lower international prices for consumers. For price calculations, officials said that HSD had become about $9 per barrel cheaper on average, down from about $113 to $104, during the week, while the price of petrol had dropped by a dollar from $91 to $90. The rupee, on the other hand, lost Rs6 in value against the dollar, declining from Rs280 to Rs286. The government has already reached the maximum permissible limit of Rs60 per litre in petroleum development levy (PDL), as stipulated by the law. The government’s budget target is to collect Rs869 billion as PDL on petroleum products for the current fiscal year, in accordance with commitments to the International Monetary Fund (IMF). Despite a gradual increase in per litre rates on petrol and almost unchanged rates at Rs50 per litre for petrol in the first quarter of the fiscal year, the total PDL collection had exceeded Rs222bn in the first quarter ending Sept 30, 2023.