Petrol price likely to drop by Rs9 per litre

The government is likely to present an Eid gift to the inflation-hit masses by slashing the petrol price by more than Rs9 per litre for the second half of June 2024.

According to industry sources, petrol prices are likely to decrease by Rs9.28 per litre, while high-speed diesel (HSD) could see a reduction of Rs4.02 per litre. Additionally, kerosene oil may drop by Rs2 per litre, and light diesel oil (LDO) could be reduced by Rs4.07 per litre.

These price cuts are based on factors such as global oil prices, currency exchange rates, and financial considerations for the energy sector. If approved, consumers could pay Rs259.08 per litre for petrol, Rs266.20 per litre for HSD, Rs169.61 per litre for kerosene oil, and Rs153.25 per litre for LDO during the last 15 days of June.

The estimated fuel price reductions are also based on the current tax structure and are calculated with zero exchange rate adjustment. Additionally, the Inland Freight Equalization Margin (IFEM) on petrol is Rs7.83 and Rs3.73 on HSD.

The Oil and Gas Regulatory Authority (Ogra) will submit its recommendations for future oil prices on June 15, after which the finance ministry will consult with the prime minister for a final decision.

Currently, petrol is priced at Rs268.36 per litre, HSD at Rs270.22 per litre, kerosene oil at Rs171.61 per litre, and LDO at Rs157.32 per litre in the open market.

Petrol is primarily used for cars and motorcycles, whereas HSD powers heavy vehicles such as trucks and buses, as well as industrial machinery.