For the fourth consecutive fortnight, petroleum prices in Pakistan are expected to drop by around Rs10 per litre for both petrol and high-speed diesel (HSD) starting September 15, provided the government does not raise the petroleum levy.
According to sources, global oil prices have seen a decline of about $5 per barrel over the past two weeks. As a result, prices of petrol and HSD are projected to fall by Rs10-11 per litre, based on current exchange rates and tax policies.
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However, the government may opt to increase the petroleum levy by Rs5 per litre to recover part of the Rs100 billion revenue shortfall faced by the Federal Board of Revenue (FBR) in the current fiscal year. In that case, the reduction in prices would be lessened to around Rs5-6 per litre.
Over the past fortnight, the international price of petrol dropped to less than $76 per barrel from around $81, while HSD prices fell to $83 per barrel from $88.5. The exchange rate and import premiums remained stable during this period.
Currently, the ex-depot price for petrol is Rs259.1 per litre, while HSD is Rs262.75 per litre. In early September, the government reduced petrol and HSD prices by Rs1.86 and Rs3.32 per litre, respectively.
