Consumers should prepare for a possible fuel price hike in the first half of February. Industry sources indicate that petrol, high-speed diesel (HSD), kerosene oil, and light diesel oil may see price increases due to refining costs and government-imposed taxes.
Projected Price Increases
According to market estimates, petrol prices may rise by Rs1.24 per liter, bringing the cost from Rs173.55 to Rs174.79 per liter. HSD is expected to see the highest jump, increasing by Rs4.49 per liter, from Rs182.26 to Rs186.75 per liter.
Kerosene oil prices may climb by Rs5.93 per liter, reaching Rs164.76 per liter from the current Rs158.83. Similarly, light diesel oil (LDO) could rise by Rs5.05 per liter, increasing from Rs151.68 to Rs156.73 per liter.
Impact on Depot Prices
The refinery price hike will likely influence ex-depot rates, which determine the final retail cost for consumers. Petrol depot prices may increase from Rs256.13 to Rs257.37 per liter, while diesel could climb from Rs260.95 to Rs265.44 per liter.
Kerosene oil may see a rise from Rs169.25 to Rs175.18 per liter, while light diesel could go up from Rs156.53 to Rs161.58 per liter. These adjustments will affect fuel stations and transportation networks across the country.
Key Factors Behind the Price Hike
Several elements contribute to this expected increase:
- Refining Costs: Higher production costs at refineries are pushing prices upward.
- Government Taxes: Fuel prices include various levies and duties that impact final rates.
- Inland Freight Equalization Margin (IFEM): This cost accounts for fuel transportation across different regions, influencing depot prices.
- International Premium on Petrol (PMG): The estimated premium stands at $8.84 per barrel for imported petrol, further contributing to the price surge.
Awaiting Final Confirmation
The government will confirm the final rates after reviewing one remaining day of Platts data and making necessary adjustments. Any fluctuations in the exchange rate could also impact the final pricing.
If implemented, these price hikes could increase transportation costs, affect household budgets, and contribute to inflation, making daily essentials more expensive.
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