Expected Changes in Fuel Prices Starting January 1

The government has hinted at an adjustment in the prices of petroleum products for the next 15 days.

Projected Price Adjustments

1. Petrol (Gasoline):
   • Reduction of Rupees 2.00 per liter.
   • Expected new price: Rupees 250.20 per liter (down from 252.10).
2. High-Speed Diesel (HSD):
   • Increase of Rupees 3.62 per liter.
   • Expected new price: Rupees 259.00 per liter (up from 255.38).
3. Light Diesel Oil (LDO):
   • Increase of Rupees 3.03 per liter.
   • Expected new price: Rupees 151.97 per liter.
4. Kerosene Oil:
   • Increase of Rupees 0.05 per liter.
   • Expected new price: Rupees 161.71 per liter.

Factors Influencing the Adjustments

• International Market Trends:
  • A slight increase in the average prices of high-speed diesel (HSD) and light diesel oil (LDO) internationally over the past two weeks.
  • Marginal rise in the ex-refinery cost of kerosene oil.
• Import Premium:
  • No changes reported in the import premium for petrol and diesel.
• Freight Equalization Margin:
  • Minimal price difference in petrol likely to be absorbed within this margin.
• Taxation:
  • The government currently collects Rupees 76 per liter on both petrol and high-speed diesel, a significant portion of the retail price.

Current Fuel Prices

• Petrol: Rupees 252.10 per liter.
• High-Speed Diesel (HSD): Rupees 255.38 per liter.
• Light Diesel Oil (LDO): Rupees 148.94 per liter.
• Kerosene Oil: Rupees 161.66 per liter.

Implications for Consumers and Industries

• Petrol users will benefit from a slight relief in prices.
• Diesel users, including transport and industrial sectors, will bear a marginal increase in costs.
• The changes aim to balance domestic pricing against fluctuating international rates while maintaining government revenue streams.

The official announcement will be made on January 1, 2024, confirming the new prices.