Petrol prices set to surge by Rs4-5 per litre from Nov 16

Following a straight decline for a few months, petroleum products are expected to inflate for a second fortnight by Rs4-5 per litre from November 16 due to an increase in global oil prices. 

Sources privy to the matter stated that the average prices of petrol and HSD were increased by $1.7 and $4.4 per barrel, respectively, in the international market for a fortnight.

However, the import premium on petrol went up to almost $1 per barrel, which depicts the exchange rate and tax calculation will lead the existing rates to over Rs250 per litre. 

After a surge from $77.2 per and $75.6 per barrel, the official said petrol and HSD were being sold on average at $88 per barrel and $83.6 per barrel, respectively, in the global market.  

Moreover, during the fortnight, the import premium on petrol increased to $9.80 per barrel from $8.8, while it remained unchanged at $5 per barrel for HSD.

Earlier on October 31, the government increased the prices of petrol and HSD by Rs3.85 and Rs1.35 per litre, respectively.

Currently, the government is charging about Rs76 per litre tax on petrol and HSD with zero general sales tax on all petroleum products.

Additionally, Rs16 custom duty and Rs17 as distribution and sale margins were being charged per litre on petrol and HSD.