Govt likely to increase fuel price

In a potential blow to consumers, the interim government is considering raising petrol prices by Rs8 to Rs11 per litre, effective from February 1, 2024, depending on the exchange rate adjustments.

High-Speed Diesel (HSD) prices are also anticipated to increase by Rs2 to Rs7 per litre during the upcoming fortnight, beginning January 1, driven by expected exchange rate adjustments.

Based on projected exchange adjustments of Rs2.75 per litre for petrol and Rs4.50 per litre for HSD, the potential increase would be Rs8 per litre for petrol and Rs2 per litre for HSD.

Read more: Petrol price slashed by Rs8 per litre

The estimated import premium on petrol stands at $9.47 per barrel. Simultaneously, the premium on HSD is expected to rise to $6.50 per barrel, up from $5.30 per barrel in the current fortnight.

The government may sustain the price of kerosene oil (kero) and light diesel oil (LDO) by adjusting the prices.

According to the estimates, LDO price should be increased by Rs 1 per litre and KERO should be reduced by Rs 1.50 per litre.

Also read: Petroleum prices likely to go down

The calculation for a fortnight starting from February 1 is based on the current rate of petroleum levy (PL) and general sale tax (GST).

The price of Brent went up by more than $3 per barrel to $83 from $78 per barrel since January 16 while HSD had become costlier by about $2 per barrel to $97 from about $95 per barrel during the same period.