Petrol and high-speed diesel (HSD) prices are expected to drop by around Rs10 per litre from September 15 for the fourth consecutive two-week period.
In addition, this expected drop follows a $5 per barrel reduction in international oil prices over the last two weeks.
Currently, the international price of petrol stands at less than $76 per barrel, down from around $81, while HSD has decreased to about $83 per barrel from $88.5. Despite this, the government might raise the petroleum levy by Rs5 per litre to compensate for a Rs100 billion shortfall in revenue, potentially reducing the price cut to Rs5-6 per litre.
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In the most recent pricing update effective from September 1, the government lowered the prices of petrol and High-Speed Diesel (HSD) by Rs1.86 and Rs3.32 per litre, respectively. In the last six weeks, the cumulative decreases amount to Rs16.50 per litre for petrol and Rs19.88 per litre for HSD.
Furthermore, petrol, used mainly in private vehicles and small transport, directly affects the budget of the middle and lower middle classes. HSD, used in heavy transport and agricultural machinery, impacts the cost of goods and services, including essential commodities. However, price drops are often not fully reflected in fare and goods prices.
