Petrol, diesel prices likely to be cut by Rs9 per litre

The petrol and high-speed diesel (HSD) prices are set to drop by about Rs5 and Rs9 per litre, respectively, on Tuesday mainly because of a fall in the international prices and import premiums. Informed sources said the prices of petrol and HSD had declined in the international market by about $3 and $5 per barrel, respectively, in the last fortnight. Depending on the final calculation of the inland freight equalisation margin (IFEM), the price of petrol is projected to come down by Rs4.50-5.20 per litre and that of HSD by Rs8-8.50 per litre. The petrol import premium has dropped by almost 10pc to $9.60 per barrel from $10.7. This is the second fortnightly fall from $13.50 per barrel in March. On the other hand, however, the rupee lost about 45 paise against the dollar during the fortnight to Rs278.65. The net impact is estimated to be about Rs5 per litre reeducation in petrol price from the existing Rs295.