Another petrol bomb expected to hit already inflation depressed masses as a significant hike in petrol prices are anticipated due to the surge in global oil prices, reported.
The Oil and Gas Regulatory Authority (Ogra) is set to announce revised prices for petrol, diesel, and other petroleum products on September 15, taking into account the average international crude oil prices and exchange rate fluctuations during the first half of September.
According to industry estimates, petrol prices may increase by Rs16 per liter in the next fortnight’s review, while the price of high-speed diesel (HSD) is expected to rise by Rs13.66 per liter.
The ex-depot price of petrol for the upcoming fortnight is calculated at Rs321.35 per liter, compared to its current price of Rs305.36 per liter, indicating a Rs15.99 increase. Similarly, the ex-depot price of HSD is projected to be Rs325.50 per liter, up from the current Rs311.84 per liter, reflecting a Rs13.66 per liter increase. Kerosene and light diesel oil (LDO) prices are also predicted to rise by Rs10.02 and Rs4.45 per liter, respectively.
The depreciation of the rupee and the escalating international petroleum product prices are the primary factors contributing to the rise in ex-depot prices.
The petroleum industry has based the ex-depot prices of petroleum products for the next fortnight on an average exchange rate of Rs304.21 per US dollar, compared to the existing price’s average exchange rate of Rs299.77 per US dollar. Industry experts anticipate a possible reduction in the exchange rate, given the recent decline of the US dollar in the interbank market. However, they caution that any relief for consumers may be limited since global petroleum product prices have also risen, resulting in higher costs for local consumers.
An industry official noted, “The rupee’s appreciation will positively impact petroleum prices, but it will not be sufficient to offset the effects of increasing global oil prices.” Consequently, consumers are likely to face the impact of higher petroleum product prices.
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