Canada Global(Web News) Due to the increase in the value of the rupee, a further reduction in the price of diesel by Rs. 5 and petrol price by Rs. 18 per liter is expected from November 1.
According to a report, official sources said that if the caretaker government does not increase the petroleum levy further, the price of high-speed diesel is likely to decrease by around Rs 5-6 per liter while petrol will be cheaper by around Rs 18 per litre.
This is largely due to the appreciation of the rupee by about Rs.3 against the dollar in the last 15 days, during which the average price of diesel in the global market has fallen by about $1.3 per barrel, while the price of petrol has fallen by about It fell by $3.5 per barrel.
Sources say the fall in prices has given the government an opportunity to increase the petroleum levy on diesel from Rs 55 per liter to Rs 60 per liter but revenue collection has so far been better than the set targets.
The petroleum levy on petrol is already Rs 60 per litre, giving the government around Rs 869 billion petroleum levy on petroleum products during the current financial year as per the budget target and commitments made to the International Monetary Fund.
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The total collection of petroleum levy in the first quarter ended September 30, 2023 had already crossed Rs 222 billion, but the per liter price of petrol continued to rise and during the first quarter of the financial year it was around 50 Per liter was Rs.
The prices of petroleum products and electricity are the main reason behind the rising inflation, which was recorded at 31.4 percent in September and is expected to increase further due to the massive hike in gas prices by the government last week.
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Based on the current tax rate and other overheads, petrol prices may come down by Rs 17-18 per liter as the dollar depreciated from Rs 282 to Rs 279 in 15 days, reliable sources said. On the other hand, if the government decides to maintain the petroleum levy at Rs 55 per litre, the price of diesel may come down by around Rs 5 to 6 per litre.
In the global market, unlike petrol, the price of diesel has decreased by almost one dollar per barrel in the last two weeks, from $114 per barrel to $113 per barrel.
