The government is expected to reduce the prices of petrol and diesel starting August 1, 2024, according to sources from the government and industry. Petrol prices may drop by Rs5.50 per litre, and diesel prices could decrease by Rs11.06 per litre for the next fortnight.
The price of kerosene is also projected to go down by Rs5.84 per litre, while Light Diesel Oil (LDO) may see a reduction of Rs5.07 per litre.
“This relief in POL (petrol, oil, lubricants) prices is attributed to a $1.50 per barrel reduction in premium by Kuwait Petroleum Company (KPC) on diesel, and lower demand for POL products by major economies like the USA and China,” said the sources.
From August 1, 2024, the new sale price of petrol is likely to be Rs270.10 per litre, down from the current Rs275.60 per litre. High Speed Diesel (HSD) may be priced at Rs272.57 per litre, reduced from Rs283.63 per litre. The price of kerosene could be set at Rs177.87 per litre, down from Rs183.71 per litre, and LDO might be priced at Rs161.18 per litre, reduced from Rs166.25 per litre.
However, if the government decides to increase the petroleum levy by Rs5 per litre on both petrol and diesel, the relief could be reduced to Rs0.50 per litre for petrol and Rs6.06 per litre for diesel.
In the last two fortnights starting from July 1 to July 31, petrol prices were increased by Rs17.44 per litre and diesel by Rs15.74 per litre.
The internal freight margin on petrol currently stands at Rs7.79 per litre and on HSD at Rs4.51 per litre. The premium on petrol is $8.48 per barrel and $5 per barrel for HSD.
