Petroleum prices, including petrol and high-speed diesel (HSD), are expected to decrease by Rs5-6 per litre starting September 1, marking the third consecutive fortnight of price reductions.
This decline is attributed to lower international oil prices and a slight appreciation of the local currency. In the past two weeks, the global price of petrol fell to around $80.40 per barrel, down from $82.50, while HSD dropped to approximately $88 per barrel from $90.30. The import premium on petrol also saw a slight reduction.
Currently, petrol is priced at Rs260.96 per litre and HSD at Rs266.07 per litre. In mid-August, the government reduced these prices by Rs8.47 and Rs6.70 per litre, respectively. Despite these price drops, the government continues to impose a significant petroleum levy, with Rs60 per litre on both petrol and HSD, in addition to other taxes.
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These levies are part of a broader fiscal strategy to generate revenue, projected to total Rs1.28 trillion for the next fiscal year.
The anticipated reduction in fuel prices is expected to have limited impact on transportation costs and the prices of essential goods, which traditionally do not adjust in line with fuel price drops.
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