The government is considering a significant rise in petroleum product prices. For the latter half of July 2024, substantial increases in petrol and diesel prices are anticipated.
Experts in the industry suggest that petrol prices may increase by Rs. 7.67 per liter, and high-speed diesel (HSD) could see a rise of Rs. 3.72 per liter. Kerosene oil and light diesel oil (LDO) are also expected to go up by Rs. 2.39 and Rs. 0.92 per liter, respectively.
These proposed adjustments, driven by global oil prices, currency exchange rates, and financial dynamics in the energy sector, might lead to petrol costing Rs. 273.28 per liter, HSD at Rs. 281.25 per liter, kerosene oil at Rs. 184.25 per liter, and LDO at Rs. 166.65 per liter in the latter part of July 2024.
The tax framework and predicted changes in the dollar exchange rate are significant factors in these price calculations. The Inland Freight Equalisation Margin (IFEM) for petrol is expected to increase from Rs. 6.12 to Rs. 7.79, and for HSD, it is likely to rise from Rs. 3.11 to Rs. 4.51.
Additionally, sources have indicated that if an extra petroleum levy of Rs. 5 per liter is imposed, petrol prices could climb to Rs. 278.28 per liter, reflecting a rise of Rs. 12.67, and HSD could reach Rs. 286.17 per liter, marking an increase of Rs. 8.72.