Fuel price reduction in the offing

Petrol cost may be slashed up to Rs8.36/litre; diesel price likely to go down by Rs7.70


Our Correspondent August 13, 2024
Fuel price reduction in the offing

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ISLAMABAD:

A significant reduction in fuel prices is on the cards which may provide the much-needed relief, as Pakistani consumers are already grappling with high inflation and taxes.

According to preliminary estimates, the federal government is considering slashing petrol price up to Rs8.36/litre and high-speed diesel (HSD) price by Rs7.70/litre for the fortnight commencing on August 16, 2024.

Kerosene oil and light diesel oil (LDO) are also in line for price cuts, with anticipated reduction of Rs7.16 and Rs4.49/litre, respectively.

These price revisions could bring petrol cost down from Rs269.43 to Rs261.07/ litre, HSD from Rs272.77 to Rs265.07/litre, kerosene oil from Rs177.39 to Rs170.23/ litre and LDO from Rs160.53 to Rs156.04/ litre.

Price calculation is based on current rates of taxes on petroleum products. In the budget for fiscal year 2024-25, the government has increased the petroleum levy ceiling from Rs60 to Rs70/litre. However, it has been kept unchanged so far at Rs60/ litre. Earlier, Prime Minister Shehbaz Sharif approved a reduction in the price of diesel by Rs10.86/litre, effective from August 1, 2024, in line with the decrease in global oil prices.

The price of petrol was reduced by Rs6.17/litre, kerosene oil by Rs6.32/ litre and LDO by Rs5.72/litre. The Oil and Gas Regulatory Authority worked out the consumer prices of petroleum products, based on fluctuations in the international market.

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