February 14, 2023 (MLN): The price of petrol will likely see a steep rise by around Rs20 per litre in the upcoming fortnightly review scheduled for February 15, 2023, as The News reported on Tuesday.
The increase in petrol price will be based on international calculations of a free on board (FOB) basis, and it could lead to a rise in the exchange rate in the next review, as per sources.
The petrol prices may rise further if the government adjusts Rs20 per litre on account of the exchange rate, which could take the price up to Rs40 per litre.
However, diesel prices are not expected to increase on FOB sans exchange rate adjustment, and it is only if the exchange rate is adjusted that diesel prices may rise in the next review.
It is reported that the government had implemented a significant increase of Rs35 per litre in the prices of petroleum products in the last fortnightly review, while no general sales tax (GST) has been imposed yet.
Despite a decrease in the international price of petrol, local consumers may not benefit from any reduction in prices due to the high exchange rate. The government had adjusted Rs14 per litre on diesel prices on account of the exchange rate in the previous review, but it is not expected to provide any relief to consumers due to the steep appreciation of the dollar.
As per news flows, several cities, towns, and villages in Punjab are facing a shortage of petrol, with the situation being blamed on petroleum dealers involved in hoarding petrol in anticipation of an expected price increase by mid-February.
The shortage of petrol has affected the daily life of the people of Punjab, with several businesses and transportation services also being impacted.
