Govt may keep petrol price unchanged next fortnight, small drop expected for diesel

ISLAMABAD: Pakistanis may not see any further reduction in petrol prices, as the government is reportedly planning to maintain the current price while slightly reducing the cost of high-speed diesel (HSD) starting from October 1, 2024.

Due to the current rates of petroleum levy (PL) and general sales tax (GST) on fuel, the government expects petrol prices to remain steady in Pakistan. However, there is a possibility that the prices of HSD, kerosene oil, and light diesel oil (LDO) could decrease in the first half of October 2024.

These predictions come ahead of an expected announcement by the government on Monday night regarding new prices for petrol and diesel. The decision will take into account the current economic situation, global oil prices, and other factors affecting the cost of petroleum products in Pakistan.

The revised prices will be implemented from 12:00 AM on October 1 and will remain in effect until the next fortnightly review.

For context, the premium for petrol is currently $8.768 per barrel, while the premium for HSD stands at $5 per barrel. There have been only minor changes in the exchange rate adjustments.

According to recent estimates, the price of petrol in Pakistan will most likely remain at Rs249.10 per litre. The price of HSD may decrease by Rs2.11, bringing it down from Rs249.69 to Rs247.58 per litre. Kerosene oil prices are also expected to drop by Rs3.23 per litre, from Rs158.47 to Rs155.24 per litre.

Similarly, LDO prices may decrease from Rs141.93 per litre to Rs141.04 per litre. It should be noted that these estimates are subject to changes in the global oil market.

As of today, high-octane petrol in Pakistan is being sold at a price over Rs16 per litre higher than regular petrol.

Below is a picture showing the price difference between high-octane and regular petrol being sold at a petrol pump in Islamabad.

Despite being nearly Rs17 per litre more expensive than “MS super” petrol, many people who can afford it are preferring high-octane fuel these days, a worker at the petrol pump revealed.

He said that the current price difference between regular and high-octane fuel is not significant for those who own “new and big cars,” and additionally, high-octane fuel is of better quality compared to regular petrol.

Read next: Xiaomi 14T launched in Pakistan with a not-so-Mi price tag