Petrol, diesel may see a fall of up to Rs15

Thanks to a significant drop in the international market, petrol and high-speed diesel (HSD) prices are expected to decrease by about Rs15 and Rs9 per litre on May 15 despite increased import premiums. Informed sources said the prices of petrol and HSD had declined in the international market by about $8.7 and $4.3 per barrel, respectively, in the last fortnight. Depending on the final calculation of the inland freight equalisation margin (IFEM), the petrol price is projected to come down by Rs14.75 and HSD by Rs8.50 per litre. The import premium on petrol increased by more than 7pc in the last fortnight to $10.30 per barrel. Earlier, it had dropped in two phases to $9.60 per barrel before April 30 from $13.50 per barrel in March. On the other hand, however, the rupee also gained about 20 paise against the dollar during the fortnight to Rs278.45 from Rs278.65. The net impact is estimated to be about Rs15 per litre reduction in petrol price from the existing rate of Rs288.49.