For the third consecutive fortnight, the prices of major petroleum products like petrol and high-speed diesel (HSD) are expected to decrease by around Rs 5-6 per litre.
The prices of oil have decreased by $2 to $2.30 per barrel in the international market in the last fortnight. Factoring in the exchange rate and existing tax rates, the prices of both petrol and HSD are projected to come down by Rs 5 to 5.50 per litre.
The average price of petrol in the international market has dropped to around $80.40 per barrel from about $82.50 per barrel previously. Similarly, HSD prices have declined to about $88 per barrel from $90.30.
During the current fortnight, the import premium on petrol has decreased by about 50 cents per barrel to $8.50, while the premium on HSD remained unchanged at $5 per barrel. Additionally, the local currency has gained 25 cents against the US dollar in the last two weeks.
Currently, the ex-depot price of petrol stands at Rs 260.96 per litre, and HSD is at Rs266.07 per litre. In the previous pricing review on August 14, the government had reduced the prices of petrol and HSD by Rs8.47 and Rs6.70 per litre, respectively. Over the last two fortnights, the total reduction in petrol and HSD prices amounted to Rs14.64 and Rs17.56 per litre, respectively, including the decrease of Rs 6.17 and Rs 10.86 per litre on July 31.
Before that, the prices of both petrol and HSD had increased by Rs17.44 and Rs15.74 per litre, respectively, in the first fortnight of July. Between May 1 and June 15, the prices of petrol and HSD were reduced by about Rs35 and Rs22 per litre.