Over Rs13 per litre cut in petrol price likely

Projection based on global oil price fall, rupee strengthening

ISLAMABAD:

Prices of petrol and high-speed diesel are expected to decline up to Rs13.66 per litre effective from December 16, 2023, which is in line with the fall in international markets and appreciation of Pakistani rupee.

In case the caretaker government does not allow exchange rate adjustment to Pakistan State Oil (PSO), a major importer and marketer of petroleum products, estimates suggest that ex-depot prices of petrol and diesel may drop significantly.

According to oil industry estimates, based on the current rate of petroleum levy and general sales tax, reduction of Rs13.10 per litre and Rs13.66 per litre in prices of petrol and diesel, respectively, is projected for the second half of December.

This anticipated reduction is attributed to the decline in global oil prices and strengthening of the rupee against the US dollar. Since December 1, crude oil price has gone down by $5.49 to $94.95 per barrel while diesel price has decreased by $5.13 to $100.05 per barrel.

Read FPCCI president urges petroleum price cut

Pakistan imports 70% of refined petroleum products as the country’s five refineries have limited production capacity.

Petrol price may go down from Rs281.34 to Rs268 per litre and high-speed diesel could become cheaper from Rs289.71 to Rs276 per litre.

Kerosene oil price is expected to decrease by Rs8 to Rs192 per litre while light diesel oil rate may fall from Rs175.93 to Rs165 per litre.

Final decision on fuel price revision, in light of recommendations of the Oil and Gas Regulatory Authority (Ogra), will be made by the government on December 15.

Published in The Express Tribune, December 15^th, 2023.

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