Petrol price may be cut, but diesel to cost more

Despite a 14 per cent appreciation of the rupee against the dollar, the prices of three major petroleum products, including high-speed diesel (HSD), are estimated to go up by Rs5 to 12 per litre and that of petrol to drop by almost Rs11 per litre on Oct 15 for next fortnight if the government maintains existing tax rates. Based on existing tax rates, the ex-depot price of petrol has been estimated to come down by Rs10.75 per litre to about Rs214. Conversely, the price of HSD is estimated to increase by Rs11.50 per litre to about Rs247. Likewise, the prices of kerosene and light diesel oil (LDO) are estimated to be higher by Rs4.50 and Rs7.50 per litre to about Rs196 and Rs194 per litre, respectively. The benchmark international crude prices had dropped over the last couple of weeks but because of refining capacity constraints refining margins and premiums on HSD had increased over the same period, resulting in a higher cost impact on HSD imports to Pakistan. The crude prices have again started an upward journey this week after production cuts announced by the major oil exporting countries but these would translate to price changes in the next fortnight beginning Nov 1.