Petrol prices likely to come down from August 1

ISLAMABAD: The federal government is likely to announce a decrease in petrol prices by Rs 3 per litre for the first half of August.

The price of high-speed diesel (HSD) is also expected to fall by around Rs 8.50 per litre while prices of Kerosene oil are also likely to slide by Rs 9.11 per liter, according to sources.

Weekly inflation increases 0.17 per cent

OGRA will send a summary for the petrol prices in August to the government keeping in line with global prices. The official announcement of the new prices will be made at midnight on July 31, 2024.

These prices will be valid with effect from August 1, 2024.

The drop in prices on the international market over the last fortnight saw petrol decreasing by approximately $2 per barrel and HSD by $3 per barrel.

The international market recorded a decrease in the average price of petrol to $87.50 from $89.50 per barrel, and HSD to $94 from about $96.93 per barrel. 

Additionally, the import premiums have decreased, with petrol dropping to $8.80 from $9 per barrel and HSD to $5 from $6.50 per barrel. The exchange rate has remained stable during this period.

Amidst these changes, the government has increased the maximum petroleum levy to Rs70 per litre in the current Finance Bill, aiming to collect Rs1.28 trillion in the upcoming fiscal year, up from Rs960 billion collected last year.

Currently, the ex-depot price for petrol is Rs275.60 per litre and Rs284 per litre for HSD. With the proposed adjustments, petrol prices are expected to stabilize above Rs272 per litre, and HSD could approach Rs275 per litre, assuming there are no further increases in the petroleum levy.