Petrol price expected to be reduced by up to Rs6 per litre on September 1

ISLAMABAD: Pakistanis are expected to receive some relief as the government is likely to reduce the price of petrol by up to Rs6 per litre for the first two weeks of September. The anticipated decrease will be announced on Sunday, September 1, and will be in effect until the next review on September 15.

This reduction is also expected to apply to high-speed diesel (HSD), with prices projected to fall by Rs5-6 per litre.

If confirmed, this will mark the third consecutive cut in petrol prices. While this is positive news, the reduction of less than Rs10 per litre for both petrol and diesel may not be viewed as a substantial decrease in petroleum prices.

Currently, the ex-depot price of petrol is Rs260.96 per litre, and HSD is Rs266.07 per litre. In the last pricing update on August 14, the government had reduced these prices by Rs8.47 and Rs6.70 per litre, respectively. It is important to note that this adjustment on August 14 was made ahead of the scheduled review.

Over the past two fortnights, the cumulative reduction in petrol and HSD prices amounts to Rs14.64 and Rs17.56 per litre, respectively. This includes earlier reductions of Rs6.17 and Rs10.86 per litre on July 31.

In the first fortnight of July, petrol and HSD prices had risen by Rs17.44 and Rs15.74 per litre, respectively. Between May 1 and June 15, there were significant price reductions of approximately Rs35 per litre for petrol and Rs22 per litre for HSD.

Recent data reveals that the international prices for petrol and HSD have decreased by $2 to $2.30 per barrel over the past fortnight. Based on the latest exchange rates and existing tax structures, local prices for both products are projected to decrease by Rs5 to Rs5.50 per litre.

Currently, the average international price for petrol stands at about $80.40 per barrel, down from $82.50 per barrel. HSD prices have also dropped, from $90.30 to approximately $88 per barrel over the same period.

During the current fortnight, the import premium for petrol has fallen by 50 cents per barrel to $8.50, while the premium for HSD remains steady at $5 per barrel. Additionally, the local currency has appreciated by 25 cents against the US dollar.

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