From August 1, motorists in Pakistan can expect a welcome relief as both petrol and high-speed diesel (HSD) prices are slated to decrease. This adjustment comes in response to declining international market prices and reduced import premiums.
Initial reports suggest that petrol prices may decrease by approximately Rs3 per liter, while HSD prices could see a substantial drop of Rs8.50 per liter over the next two weeks. The recent downturn in global market rates saw petrol prices decrease by about $2 per barrel and HSD by $3 per barrel. When factoring in current tax rates, this translates to an expected reduction of Rs2.90 per liter for petrol and Rs8.50 per liter for HSD locally.
International market indicators reveal that the average price of petrol has fallen from $89.50 to $87.50 per barrel, whereas HSD prices have decreased from nearly $97 to $94 per barrel. Import premiums have similarly dropped, with petrol decreasing from $9 to $8.80 per barrel and HSD from $6.50 to $5 per barrel. The stability of the exchange rate has further contributed to these favorable adjustments.
However, amidst these price declines, the government has raised the maximum petroleum levy to Rs70 per liter in the current Finance Bill. This measure aims to increase revenue collection to Rs1.28 trillion for the upcoming fiscal year, up from Rs960 billion last year.
As of now, the ex-depot price stands at Rs275.60 per liter for petrol and Rs284 per liter for HSD. Following the anticipated adjustments, petrol prices are expected to stabilize around Rs272 per liter, while HSD prices could approach Rs275 per liter, assuming no further increments in the petroleum levy.
These impending price revisions offer a respite to consumers amid global market fluctuations and local fiscal policies aimed at balancing revenue needs with consumer affordability.
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