Reduction in international market prices leads to estimated declines of Rs3 for petrol and Rs8.50 for diesel per litre.
Starting August 1, petrol and high-speed diesel (HSD) prices in Pakistan are expected to decrease due to falling international market prices and lower import premiums.
According to media reports, petrol prices may drop by around Rs3 per litre, while HSD could see a reduction of Rs8.50 per litre in the coming fortnight.
The recent fortnightly decrease in international market prices saw petrol prices fall by approximately $2 per barrel and HSD prices by $3 per barrel. Based on these reductions and current tax rates, local pump prices are expected to decrease by Rs2.90 per litre for petrol and Rs8.50 per litre for HSD.
The average international price for petrol dropped from $89.50 to $87.50 per barrel, while HSD prices decreased from about $96.93 to $94 per barrel. Additionally, import premiums have declined, with petrol premiums dropping from $9 to $8.80 per barrel and HSD premiums from $6.50 to $5 per barrel. The exchange rate has remained stable during this period.
Amidst these changes, the government has increased the maximum petroleum levy to Rs70 per litre in the current Finance Bill. This aims to collect Rs1.28 trillion in the upcoming fiscal year, up from Rs960 billion collected last year.
The ex-depot petrol price is Rs275.60 per litre and Rs284 per litre for HSD. With the proposed adjustments, petrol prices are expected to stabilize above Rs272 per litre, while HSD prices could approach Rs275 per litre, assuming no further increases in the petroleum levy.
