Petrol prices likely to decline by up to Rs3 per liter on November 1

A reduction in petroleum prices is anticipated next month as petrol and diesel prices are projected to decline by Rs2-3 per liter from November 1 to 15.

According to sources, petrol and High-Speed Diesel (HSD) prices in the global market declined by $1.5 and $2.5 per barrel, respectively, over the past fortnight.

Considering the current exchange rate and existing tax rates, this indicates a potential Rs3 and Rs2.30 per liter reduction in petrol and HSD prices for consumers.

The global market price of petrol declined by $76 per barrel from about $77.5 per barrel. Similary,  HSD declined by $84 per barrel from $86.5 in the last fortnight.

However, the import premium on petrol and HSD remained unchanged at $8.7 and $5 per barrel, respectively, while the exchange rate also remained unchanged.

Earlier, on October 15, the price of diesel increased by Rs5, and the petrol price remained unchanged at Rs247.03 till the end of this month. It was the first price hike for petroleum products in the last three months. 

Currently, the government is charging about Rs76 per litre tax on both petrol and HSD, Rs60 per litre  Petroleum Development Levy (PDL) and Rs 16 per litre customs duty. 

Additionally, approxiamtely Rs17 per litre distribution and sale margins were going to oil companies and their dealers.