Petroleum prices are expected to decrease from 1st Aug 2024

From 1st Aug 2024, Petroleum prices are expected to decrease, as the price of Petrol is likely to go down by Rs. 5.50, HSD by Rs 11.06, and kerosene oil by Rs. 5.84 respectively.

The relief in petroleum product prices is subjected to the international petrol prices which show a price decrease of $. 1.50 per barrel in premium by Kuwait Petroleum Company (KPC) and reduced demand for petroleum products by the world’s biggest economies like the United States and China.

After the consecutive shocks in the 2 fortnights of July 2024, petroleum prices are expected to decrease from August 1, 2024. According to our resources, petroleum price is expected to go down by Rs. 5.50 per liter, while High-speed diesel (HSD) is likely to see an even larger decrease of Rs. 11.06 per liter, which will set the new petrol price to Rs. 270.10 per liter, down from the current Rs. 275.60 per liter and for HSD the new price is expected to be Rs. 272.57 per liter, compared to the current price which is Rs. 283.63 per liter.

The price of kerosene oil is also expected to go down by Rs 5.84 and Light Diesel Oil (LDO) by Rs. 5.07 setting the new price of kerosene oil at Rs. 177.87 per liter from Rs. 183.71 per liter, and for Light Diesel Oil new price could likely to be Rs. 161.18 per liter, from the current price Rs. 166.25.

INCREASE IN LEVY WILL AFFECT THE RELIEF IN PETROLEUM PRICES

According to reliable resources, it is expected that government will increase the petroleum levy by Rs 5 per liter on petrol and diesel. If that happens the final reduction in petroleum prices could be much lesser and the relief could be reduced to Rs. 0.50 per liter in petrol price, Rs. 6.06 per liter in diesel price, and Rs. 0.84 for kerosene oil

From July 1 to July 15, during the 1st fortnight of July, the price increase in petrol was Rs.7.45 for high-speed diesel HSD the increase was Rs. 9.46. In the 2nd fortnight of July, the government has to increase the petrol and HSD prices to Rs.9.99 and Rs. 6.18. After these additions, the total increase in petrol and HSD prices in July 2024 was Rs. 17.44 and Rs. 15.74 per liter, respectively.