Slashing of petroleum prices likely from Feb 16th

ISLAMABAD: The prices of all petroleum products are estimated to decrease by Rs2.50 to Rs9 per litre on Saturday for the next fortnight, ending Feb 28, owing to the impact of lower international market prices.

Informed sources said the ex-depot petrol price was estimated to go down by Rs2-2.50 per litre depending on final calculation on Feb 15 while high-speed diesel (HSD) may drop by about Rs9. Kerosene and light diesel oil prices are estimated to fall by about Rs3.45 to Rs5 per litre.

The estimates for higher prices of petroleum products stem from a decline in the international market.

The benchmark Brent prices decreased by $2 per barrel last fortnight. These sources said the average prices of HSD decreased by around $3 per barrel in the international market while that of petrol dropped by about 90 cents per barrel last fortnight. The ex-refinery cost of kerosene and LDO also came down. Import premium on petrol fell by $1 $7.75 per barrel from $8.8 while it remained unchanged on diesel.

As a result, the latest calculation as of February 29 showed around Rs9 per litre decrease in HSD rate, Rs2.50 per litre in petrol, Rs3.50 per litre in kerosene and about Rs5 per litre in LDO.

The ex-depot petrol price currently stands at Rs257.13 per litre, while that of HSD is Rs267.95 per litre. Kerosene’s official rate is Rs174.85 per litre but it is sold at Rs300-350 per litre.

Petrol is mainly used in private transport, small vehicles, rickshaws, and two-wheelers, and it directly affects the budget of the middle and lower middle classes.

Most of the transport sector runs on HSD. Its price is considered inflationary as it is primarily used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the prices of vegetables and other eatables.

Published in Dawn, February 15th, 2025