From February 15, 2023, the government may increase the price of Petrol by Rs20 per liter.
Insiders in the oil business claim that they determined the most recent increase in gas prices using international gasoline pricing computations or on a Free on Board (FOB) basis.
The government recently increased the price of gasoline by a huge Rs35 per liter and began charging Rs50 per liter for petroleum duty (PL). The General Sales Tax (GST), however, has not yet gone into effect.
If the exchange rate is changed during the subsequent price adjustment, the cost of gasoline can rise even further. Furthermore, they claimed that local buyers would not receive any benefits or price breaks on petroleum items as a result of the increased exchange rate. To the detriment of domestic customers, the rupee’s sharp fall against the dollar weakened revenues.
According to the sources, if the government also adjusts currency rates, the cost of gasoline might rise by an additional Rs20 per liter, to a total of Rs40 per liter.
On the other hand, the price of fuel did not reflect an increase in FOB without a change in the currency rate. The sources claim that if the exchange rate changes, diesel prices may rise in the upcoming revision. The government increased the price of diesel by Rs14 per liter because of the exchange rate; nevertheless, the fast dollar increase nullified the prior revision’s exchange rate adjustment.
According to them, the price of diesel has decreased by five to six dollars a barrel on the international market. However, the rupee’s depreciation has prevented the government from passing these savings down to domestic customers.