Petrol price likely to drop by over Rs10

ISLAMABAD: Brace yourselves for a considerable relief at the petrol pumps as major petroleum products, including petrol and high-speed diesel (HSD), are slated to witness a substantial reduction in price of over Rs10 per litre each starting December 15.

The primary driving force behind this welcome development is the recent downturn in the international market.

The current petrol price in Pakistan is Rs.281.34/Ltr, High Speed Diesel is Rs. 289.71/Ltr and Light Speed Diesel is Rs 175.93/Ltr.

Reliable sources reveal that the global prices of both HSD and petrol experienced a nearly 5 percent dip over the past fortnight. Concurrently, the rupee strengthened marginally against the US dollar, resulting in a commendable decrease in domestic prices for consumers.

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Officials familiar with the matter detailed that HSD became more economical by approximately $4 per barrel on average, sliding from around $99.50 to $95.50 over the week. Simultaneously, the price of petrol witnessed a decline, dropping to $81.7 from $86.5.

The rupee’s ascent against the dollar further underscored the favorable conditions, reaching Rs284 from 285.5 as of December 1. Notably, the benchmark Brent oil also saw a decrease from $79 per barrel to $73 during the same period.

As a result, the new petrol rates are likely to come down by at least Rs12 per litre for HSD and a minimum of Rs10 per litre for petrol. The expected reductions extend to kerosene and light diesel oil as well, with an estimated decline of Rs7 and Rs13, respectively.

EXPECTED NEW PETROL PRICES

With these decreases, the new petrol prices would potentially become Rs 271.34/per liter while HSD would become Rs 277 per liter.

It’s noteworthy that the government has already achieved the maximum permissible limit of Rs60 per litre in petroleum levy as per the law. Despite setting a budget target to collect Rs869 billion as petroleum levy during FY24 in accordance with the IMF, there are hopes that the collection might surpass Rs950 billion by the end of June.

This impending adjustment in **petroleum prices** reflects a momentous development for consumers and holds implications for the broader economic landscape.