Petroleum prices expected to drop by up to Rs12

Prices of petroleum products are likely to be revised downward on Monday for the next 15 days following changes in international oil markets.

The expected reduction could be up to Rs12 per litre, according to media reports.

With current tax rates unchanged, reports said that the ex-depot price of high-speed diesel (HSD) may fall by around Rs11.80 per litre. Petrol prices, however, are expected to remain stable, as the projected decrease is less than Rs1 per litre.

At the same time, the government is considering adding nearly Rs1.28 per litre to fuel prices to cover higher margins approved for oil marketing companies and dealers.

This includes an increase of 61 paise per litre for oil companies and 67 paise per litre for dealers, as cleared earlier this week by the Economic Coordination Committee of the Cabinet.

Prices of other petroleum products are also expected to ease. Kerosene oil is projected to become cheaper by about Rs11.50 per litre, while light diesel oil (LDO) may see a reduction of around Rs10 per litre. At present, kerosene and LDO are priced at Rs192.86 and Rs173.77 per litre, respectively.

The current ex-depot price of petrol stands at Rs263.45 per litre. Petrol is widely used in private vehicles, motorcycles, rickshaws and small cars, making its price especially important for middle- and lower-middle-income households.

HSD is currently priced at Rs279.65 per litre and could decline to nearly Rs268 per litre from December 15.

Diesel remains the main fuel for the transport sector and is also used extensively in agriculture and railways. Its price greatly impacts inflation, as it affects the cost of freight, farming activities and the supply of essential food items, including vegetables.