Petrol, diesel prices likely to be cut by Rs9 per litre

ISLAMABAD: The petrol and high-speed diesel (HSD) prices are set to drop by about Rs5 and Rs9 per litre, respectively, on Tuesday mainly because of a fall in the international prices and import premiums.

Informed sources said the prices of petrol and HSD had declined in the international market by about $3 and $5 per barrel, respectively, in the last fortnight. Depending on the final calculation of the inland freight equalisation margin (IFEM), the price of petrol is projected to come down by Rs4.50-5.20 per litre and that of HSD by Rs8-8.50 per litre.

The petrol import premium has dropped by almost 10pc to $9.60 per barrel from $10.7. This is the second fortnightly fall from $13.50 per barrel in March. On the other hand, however, the rupee lost about 45 paise against the dollar during the fortnight to Rs278.65. The net impact is estimated to be about Rs5 per litre reeducation in petrol price from the existing Rs295.

The HSD price also dropped by about $5 per barrel, and its import premium, paid by Pakistan State Oil, remained unchanged at $6.50 per barrel. Thus, the HSD rate was estimated to be down by Rs8 to Rs8.50 per litre, subject to final exchange rate adjustment and IFEM in pricing, from the current rate of Rs290.38 per litre at the depot stage. Officials said the international market price of petrol had dropped to $96.6 per barrel from $98.5 earlier, while the HSD price to $97.5 from $102.9 per barrel.

Almost a fortnight ago, the government had increased the price of petrol and HSD by Rs4.53 and Rs8.14 per litre for the fortnight ending April 30.

The government has already achieved Rs60 per litre petroleum levy — maximum permissible limit under the law — on both petrol and HSD.

Published in Dawn, April 30th, 2024