Petrol and high-speed diesel (HSD) prices in Pakistan are likely to drop starting August 1, thanks to falling international market prices and reduced import premiums.
Reports suggest a potential decrease of about Rs3 per liter for petrol and Rs8.50 per liter for HSD for the upcoming two weeks.
The recent decline in international market prices saw petrol fall by around $2 per barrel and high-speed diesel (HSD) drop by $3 per barrel over the past two weeks. Based on these changes and current tax rates, local petrol prices are expected to decrease by Rs2.90 per liter, while HSD could drop by Rs8.50 per liter.
In the international market, the average price of petrol decreased to $87.50 per barrel from $89.50, while the price of high-speed diesel (HSD) fell to $94 per barrel from approximately $96.93.
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Moreover, import premiums have decreased, with petrol now costing $8.80 per barrel, down from $9, and HSD at $5 per barrel, reduced from $6.50. The exchange rate has stayed consistent throughout this period.
Despite these adjustments, the government has raised the maximum petroleum levy to Rs70 per litre in the latest Finance Bill. This move aims to boost revenue, targeting Rs1.28 trillion in the upcoming fiscal year, compared to the Rs960 billion collected last year.
At present, the ex-depot price stands at Rs275.60 per litre for petrol and Rs284 per litre for HSD. If the expected reductions are implemented, petrol could be priced at around Rs272 per litre, and HSD might drop to about Rs275 per litre, assuming the petroleum levy remains unchanged.
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