Petrol price likely to fall below Rs300. In the upcoming review, gasoline and high-speed diesel (HSD) prices are anticipated to fall below Rs300 per litre due to a significant decline in global oil prices and the strengthening of the rupee.
This anticipated drop in fuel prices, which could be as much as Rs20 per litre for HSD and Rs38 per litre for gasoline, would be the biggest ever.
It is important to remember that the caretaker administration has the power to make different choices, particularly with regard to high-speed diesel.
Currently, petrol has a levy of Rs60 per litre, while HSD carries a levy of Rs50 per litre for petroleum development.
As Petrol price likely to fall below Rs300, to meet its budgetary goals and commitments to the International Monetary Fund (IMF) for the current fiscal year, the government hopes to raise about Rs869 billion through a tax on petroleum products.
If these changes take place, it will be the caretaker government’s second consecutive reduction in petroleum prices following three consecutive fortnightly increases.
The cost of gasoline and high-speed diesel increased noticeably between August 15 and September 15, reaching historic highs of Rs331-333 per litre at the retail level.
Currently, the government levies a tax of around Rs. 82 per litre on gasoline and Rs. 73 on high-speed diesel.
While there is currently no general sales tax on any petroleum products, there is a petroleum development levy that is currently set at Rs60 per litre on gasoline and Rs50 per litre on HSD, among other fuels.
The cost of gasoline and diesel has remained above Rs300 per litre for the past month. Fuel costs, along with pricey electricity, have been a significant factor in high consumer prices, which increased inflation to 31.4% in September. The anticipated drop in fuel costs may help slow the inflationary trend.
Sources claim that the price of gasoline could drop by Rs36-38 per litre based on the current tax rates and other variables. This is because its international price significantly dropped by 12 percent, from $99 per barrel to $87, and because the rupee appreciated by more than 4 percent relative to the US dollar.
In a similar vein, over the past two weeks, the price of high-speed diesel has dropped by about $8 per barrel on the international market.
The cost and freight price for HSD is likely to drop by Rs22 per litre as a result of the strengthening of the rupee and stable import cargo premiums.
It is crucial to remember that the government receives a significant portion of its monthly revenue from the price of petrol and high-speed diesel.
These anticipated decreases are significant for the middle- and lower-middle-class segments because their prices have a direct impact on many economic sectors and household budgets.
