ISLAMABAD: The government is likely to reduce the price of petroleum products by over Rs10 per liter on Dec 15 for the next fortnight mainly because of a decline in the international market.
According to reports, international prices for both High-Speed Diesel (HSD) and petrol have experienced a nearly 5% decline in the past two weeks. Concurrently, the rupee has slightly strengthened against the US dollar. These factors have collectively contributed to a significant reduction in domestic fuel prices for consumers.
In terms of specific figures, officials report that the average price of HSD has decreased by approximately $4 per barrel, dropping from around $99.50 to $95.50 in the past week. Similarly, the price of petrol has seen a decrease from $86.5 to $81.7.
Furthermore, the rupee has shown improvement against the dollar, moving from Rs285.5 to Rs284 as of December 1. Notably, the benchmark Brent oil witnessed a decline from $79 per barrel to $73 during this period.
As a result of these developments, it is estimated that HSD prices will be at least Rs12 per liter cheaper, while petrol prices are expected to decrease by a minimum of Rs10 per liter. Projections also indicate reductions in the prices of kerosene and light diesel oil by Rs7 and Rs13, respectively.
The government has already reached the maximum permissible limit of Rs60 per liter for the petroleum levy, as stipulated by the law. Despite a budget target of Rs869 billion for petroleum levy collection in FY24, set in collaboration with the International Monetary Fund (IMF), there is optimism that the actual collection may exceed Rs950 billion by the end of June.
