- According to sources, the price of diesel will rise by 25 rupees per liter.
- Petrol prices are most likely going to increase by 20–21 rupees per liter.
- The review is due on February 15, and there will probably be more price increases after that.
The Ministry of Finance is expected to increase the price of gasoline in the upcoming biweekly review in order to appease the International Monetary Fund (IMF), according to The News on Saturday.
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The review due on January 31 (Tuesday) would not be significantly impacted by the sharp decline in the value of the rupee relative to the US dollar over the past two days, it should be noted that the average exchange rate would be Rs240, according to information gathered from the country’s oil sector.
The revision of gasoline prices on February 15—when the dollar rate calculation would start at Rs260—will account for this significant rise in the dollar value relative to the rupee, according to knowledgeable individuals in the oil industry.
Free on board (FOB) prices will significantly increase fuel and gasoline prices in the upcoming fortnightly review the following week. Using FOB would probably result in a 25 rupee increase in the cost of diesel, according to sources with knowledge of the situation.
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They pointed out that if the government increased the petroleum levy (PL) to Rs50 per liter on fuel, which appears likely to satisfy the IMF demand, the price might increase even further. The general sales tax (GST) inclusion, even at 10%, would be driving the price considerably higher.
It is anticipated that the price of gasoline will increase by between Rs20 and Rs21 on a FOB basis. The government has been charging Rs. 50 per liter PL for gasoline in the upcoming fortnightly pricing review, and even an additional 10% GST will be very costly for consumers.
The price of gasoline on the international market increased to $97 per barrel from $93 per barrel since the evaluation period for the
