Expected Drop in Petrol and Diesel Prices from August 1

Starting August 1, motorists can anticipate a reduction in fuel costs as the prices for petrol and high-speed diesel (HSD) are projected to decrease significantly over the next two weeks. This expected drop comes after two consecutive price hikes and is attributed to a decrease in international market prices and lower import premiums.

Recent trends show that the international market prices for petrol and HSD have dropped by approximately $2 and $3 per barrel, respectively, over the past fortnight. Specifically, the average price of petrol fell from $89.50 to $87.50 per barrel, while HSD prices decreased from around $96.93 to $94 per barrel. Additionally, the import premiums for these fuels have also reduced; petrol’s premium decreased from $9 to $8.80 per barrel, and HSD’s premium fell from $6.50 to $5 per barrel.

As a result of these changes, petrol prices are expected to decrease by about Rs. 2.90 per liter, and HSD prices are projected to drop by Rs. 8.50 per liter. With the current ex-depot prices at Rs. 275.60 per liter for petrol and Rs. 284 per liter for HSD, the new rates will see petrol priced above Rs. 272 per liter and HSD approaching Rs. 275 per liter, assuming no further increase in the petroleum levy.

The government has recently raised the maximum limit of the petroleum levy to Rs. 70 per liter through the current Finance Bill. This move aims to generate Rs. 1.28 trillion in the upcoming fiscal year, up from the Rs. 960 billion collected in the previous year, which was nearly Rs. 91 billion more than the initial budget target of Rs. 869 billion.

Despite the expected reductions in petrol and diesel prices, it’s important to keep an eye on potential adjustments in the petroleum levy, which could impact the final retail prices.

Stay tuned for further updates as we continue to monitor these developments.