On July 15, the government had increased the petrol price by a notable Rs 5.36 per litre, which triggered strong criticism from the public as well as political parties. However, according to recent developments, a possible reduction of Rs 9 to Rs 10 per litre in petroleum product prices is now being considered.
Experts are analysing the current global oil market trends and the dollar’s exchange rate to determine whether a substantial price cut is realistic. Since the government revises petroleum prices every 15 days, the next expected adjustment decision is likely to be announced on the night of July 31.
It is important to note that on July 15, when the prices were last revised, crude oil was priced at $66.70 per barrel. It has now increased to $70.25 per barrel. Likewise, the exchange rate of the dollar has slightly decreased from Rs 284.7 to Rs 283.19.
Under the agreement with the IMF, the government had decided to gradually increase the petroleum levy from Rs 75 to Rs 100. There is speculation that this time, an additional Rs 2.5 to Rs 5 might be added as a petroleum levy.
According to economic experts, due to the $4 increase in crude oil and a minor drop in the dollar rate, a Rs 9 per litre price reduction appears unlikely. Instead, a potential increase of Rs 2 to Rs 3 per litre seems more probable. However, the Ministry of Finance, in consultation with OGRA, will make the final decision on July 31.
It is also worth noting that the current petrol price already includes Rs 75.52 as petroleum levy and Rs 2.50 as climate support levy, which are being collected from consumers and may serve as a base for further adjustments.
