Further dip in prices of petroleum products expected

A $5.14 reduction per barrel in global oil prices may cause a slash of Rs12 per litre in petroleum prices


Our Correspondent June 07, 2024
PHOTO: File.

ISLAMABAD:

The government is expected to announce a further reduction of up to Rs12 per litre in petroleum prices from June 15, Express News reported.

Sources suggest that with a decrease of $5.14 per barrel in global oil prices, there is a possibility of a Rs12 per litre reduction in petrol prices in Pakistan.

It is worth noting that since April 16, petrol prices have already decreased by Rs24 per litre, while diesel prices have seen a reduction of Rs20 per litre.

On June 1, it was revealed that the government’s abrupt change of heart on petrol prices late into the night stemmed from a strong disagreement between the prime minister and the finance minister after the latter pushed the premier to reconsider its decision amid talks with the IMF, insider sources disclosed.

The government has collected more than Rs900 billion in petroleum development levy on the sale of petroleum products, surpassing the full-year collection target of Rs869 billion in 11 months of the current fiscal year.

As demand for petroleum products spiked to a nine-month high at 1.4 million tons in May 2024 in the wake of a reduction in prices, total consumption reached 13.8 million tons in July-May 2023-24, according to Topline Research.

Topline Research analyst Myesha Sohail reported that tax collection through PDL touched Rs907 billion in 11 months of FY24, adding that “the government could realise Rs990 billion to Rs1 trillion” on the back of a monthly average of Rs80-85 billion.

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