Petroleum prices likely to go down

The interim government is likely to announce a modest reduction in ex-depot prices of all petroleum products, potentially lowering them by up to Rs5.50 per litre effective Jan 16, as per the current tax rates.

According to an estimate, petrol prices could witness a significant drop of Rs5.50 per litre in the second half of Jan 2024.

However, expectations are that the rate of high-speed diesel (HSD) will remain unchanged.

Kerosene oil is anticipated to experience a decrease of Rs3 per litre, while the price of light diesel oil (LDO) may see a slight reduction of Rs1.50 per litre.

The Oil and Gas Regulatory Authority (OGRA) will present its fortnightly review to the Petroleum Division, with the final decision contingent on factors such as oil consumption, the prevailing petroleum levy (PL), general sales tax (GST), premium, exchange rates, and global oil prices.

Also read: Fuel prices to remain unchanged

According to an estimate, the price of petrol may come down from Rs267.34 to Rs261.84 per litre. The price of HSD might be kept unchanged by adjusting exchange rate at Rs1.50 and premium of $5.30 per barrel.

The price of kerosene oil is likely to be reduced from Rs188.83 to Rs185.83 per litre and that of LDO from Rs165.75 to Rs164.25 per litre.

Recent developments in global oil prices indicate a $1.5 decrease in the price of Brent Oil per barrel, dropping from $84.50 to $83 per barrel since Jan 1, 2024.

In addition, the HSD rate exhibits a decline of around $1 per barrel, reducing from $97 to $95.80.

Further, the Pakistani rupee has strengthened against the US dollar by Rs3.