Petrol price may drop the next fortnight (tomorrow) due to a decline in its average Platts price, says a report from The News.
According to details, the Platts price for petrol fell by Rs. 9.55/liter between September 1-15, which may result in a decline of Rs. 9.62/liter in petrol price. However, the report notes that the cost of petrol will also be subject to the exchange rate, which has also risen in the said timeline.
Furthermore, with a Rs. 15.39/liter customs duty, the petrol refinery rate has fallen by Rs. 7.84/liter, from Rs. 174.61/liter to Rs. 166.76/liter. Resultantly, the ex-refinery price of Petrol is expected to decline by Rs. 9.62/liter, from Rs. 183.04/liter to Rs. 173.43/liter.
The diesel price, on the other hand, is expected to rise by Rs. 3.04/liter, from Rs. 247.26/liter to Rs. 250.30/liter. The diesel Platts rate fell by Rs. 6.46/liter, from Rs. 140.38/liter to Rs. 133.93 liters. Although, the rising exchange rate and freight cost may influence the price.
The increase is also due to a possible customs duty hike on diesel fuel. The government plans to increase the duty by Rs. 3.37/liter, from Rs. 18.74/liter to Rs. 22.11/liter. This will increase the refinery rate by Rs. 1.57/liter from Rs. 223/liter to Rs. 224.57/ liter.
The ex-refinery rate of diesel will likely increase by Rs. 3.04/liter from earlier to Rs. 228.87/liter to Rs. 231.90/liter.
It bears mentioning that customers will bear the distribution margin hike for diesel and petrol, which is Rs. 3.68/liter and Rs. 7/ liter respectively. Also, the imposition of a levy on petrol and diesel is Rs. 37.50/liter and Rs. 7.50/liter respectively.
While experts predict a decline in petrol price based on these figures, the plummeting local currency value is keeping the matter uncertain.
Via: The News