The Petroleum Pricing Committee met on Saturday. The decision was taken to apply a maximum increase of 10%. Petrol will go up from Rs 55.75 to Rs 61.30 per litre and diesel from Rs 41 to Rs 45.10 per litre at the pump.
The Committee took note of the evolution of world prices of Mogas and Gas Oil, which have been persistently increasing since the past months. The Committee also considered the status of the Price Stabilisation Accounts. It has been noted that at the last PPC meeting of 28 December 2021, the retail price of Mogas should have increased by Rs 10.00 per litre or by 19.72% and that of Gas Oil should have increased by Rs13.55 per litre or 36.33% but the increases were limited to a maximum of 10%. Thereafter, there has been a continuous upsurge in the world prices of both products reaching a peak of US$964.25 per metric ton for Mogas and US$114.28 per barrel for Gas Oil on 24 February 2022.
Mogas (L’Essence) – Based on the new Reference Price of US$898.01 per metric ton for Mogas, that is, the actual prices for December 2021 to February 2022 and the future prices for March to May 2022 at an exchange rate of Rs44.10/US$, the retail price of Mogas should increase to Rs 68.15 per litre i.e by Rs12.40 per litre or by 22.24%. However, as provided for under Regulation 5 (3)(b), the increase in the retail price of Mogas has been limited to a maximum of 10% (9.96%). Thus, a loss of Rs6.85 per litre is being carried forward.
Gas Oil (Diesel) – Using the new Reference Price of US$108.45 per barrel, that is the actual prices for December 2021 to February 2022 and the future prices for March to May 2022 at an exchange rate of Rs44.10/US $, the retail price of Gas Oil should increase to Rs58.05 per litre i.e by Rs17.05 per litre or 41.59%. However, as provided for under Regulation 5 (3)(b), the increase in the retail price of Gas Oil has been limited to a maximum of 10%. Thus, a loss of Rs12.95 per litre is being carried forward.
The new retail price for both Mogas and Gas Oil is effective as from 00.00 hr on Sunday 27 February 2022.
Here is the price breakdown:
