Petrol price likely to drop by over Rs3 per litre on September 1

ISLAMABAD: The government is considering a reduction in petrol prices by Rs3.10 per litre in its upcoming fortnightly review. This would bring the price down from the current Rs260.96 per litre across the country.

Reports also indicate that the price of diesel will be reduced by Rs2.50 per litre, from the existing Rs266.07.

The new petrol price is expected to be announced on Saturday after 9:00 PM, with the latest rates taking effect from September 1, 2024.

Following the anticipated reduction, petrol in Pakistan is expected to be priced at Rs257.86 per litre for the first two weeks of September 2024, while diesel may be set at Rs263.57 per litre for the same period.

However, the expected minimal drop in the prices of petrol and diesel is unlikely to provide significant relief to the public, who continue to struggle with the high cost of daily essentials and soaring electricity prices.

The prices of kerosene oil and light diesel oil are also likely to undergo revision. Kerosene oil is expected to decrease by Rs1.39 per litre, from Rs171.77 to Rs170.38, while light diesel oil may see a reduction of Rs1.96 per litre, bringing the price down from Rs157.02 to Rs155.06.

Despite this reduction, the impact on public transportation costs is expected to be minimal. However, some daily commuters might find solace in the slight decrease in petrol prices.

On the global front, the price of petrol has dropped by $2.10 (PKR 585.94), from $82.50 (PKR 23,019) to $80.40 (PKR 22,433) per barrel (158.98 litres). The global price of diesel has similarly decreased by $2.30 (PKR 641), from $90.30 (PKR 25,195) to $88.00 (PKR 24,553) per barrel.

Currently, petrol pumps in Pakistan, including Shell, PSO, Attock, Go, and Total, are selling petrol at Rs261.90 per litre. This slight 94 paisa difference is due to variations in ex-depot prices and margins.

It is noteworthy that the current petrol price, as of August 30, 2024, is Rs44.40 per litre lower than it was on September 1, 2023, when it stood at Rs305.36 per litre.

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