Petrol prices could surge by Rs7.67 per litre

The government is considering a substantial uptick in petroleum product prices, as consumers brace for potential hikes amid existing inflationary pressures.

Consumers, already grappling with inflation, may face an additional blow due to the impending hike in petroleum product prices for the latter half of July 2024.

Industry insiders suggest that petrol prices could surge by Rs7.67 per litre, while high-speed diesel (HSD) might see an increase of Rs3.72 per litre. Kerosene oil and light diesel oil (LDO) are also expected to tick up by Rs 2.39 and Rs 0.92 per litre, respectively.

These adjustments, influenced by global oil prices, currency exchange rates, and financial dynamics in the energy sector, could elevate petrol to Rs273.28 per litre, HSD to Rs281.25, kerosene oil to Rs184.25, and LDO to Rs166.65 during the latter half of July 2024.

The estimated adjustments in fuel prices are influenced by the current tax framework and factor in projected changes in the dollar exchange rate. The Inland Freight Equalisation Margin (IFEM) for petrol is set to increase from Rs6.12 to Rs7.79, while for HSD, it will rise from Rs3.11 to Rs4.51.

Sources have also indicated the possibility of further oil price hikes in the event of an additional petroleum levy of Rs5 per litre. If implemented, this could raise petrol prices to Rs 278.28 per litre, marking an increase of Rs12.67, and HSD to Rs286.17 per litre, with a hike of Rs8.72.