Petroleum prices likely to drop by Rs 12 per liter from August 15

ISLAMABAD: Petroleum prices are forecasted to decrease by Rs 12 per liter from August 15, according to estimates based on movement in global oil prices and industry sources.

Preliminary calculations suggest that the price of petrol could decrease by over Rs9 per litre, while high-speed diesel (HSD) may see a reduction of up to Rs8.50 per litre. Kerosene oil is also likely to become cheaper, with a potential price cut exceeding Rs12 per litre.

 If the estimated reductions are implemented, then the price of petrol will reduce to RS 257.43 from Rs 269.43 for the next 15 days.

The Oil and Gas Regulatory Authority (OGRA) is set to finalise the pricing adjustments of petroleum prices and submit its recommendations to the government by August 15.

Solar panel prices dip to all-time low in Pakistan

The final decision on the new prices will be made by Finance Minister Muhammad Aurangzeb, in consultation with Prime Minister Shehbaz Sharif.

If approved, these price cuts could bring some relief to consumers facing high inflation and rising living costs across the country.

Further announcements are expected following the submission of OGRA’s report.

In the FY25 budget, the government raised the Petroleum Levy limit from PKR 60 to PKR 70 per liter. However, the levy has remained unchanged at PKR 60 per liter so far. If the government decides to increase the Petroleum Levy by PKR 5 per liter, the expected price drops for diesel and petrol would be limited to PKR 4 per liter and PKR 5 per liter, respectively.