Consumers in Pakistan can anticipate a significant reduction in petrol and high-speed diesel (HSD) prices, with reports indicating a potential drop of approximately Rs5 and Rs9 per litre, respectively, effective Tuesday. The anticipated decrease is primarily attributed to a decline in international prices and import premiums.
According to reliable sources, both petrol and HSD prices have witnessed a downward trend in the international market, with a reduction of about $3 and $5 per barrel, respectively, over the last two weeks. Depending on the final calculation of the inland freight equalisation margin (IFEM), petrol prices are expected to decrease by Rs4.50-5.20 per litre, while HSD prices may see a reduction of Rs8-8.50 per litre.
The import premium for petrol has notably decreased by nearly 10 per cent, dropping to $9.60 per barrel from $10.7. This marks the second consecutive fortnightly decline from $13.50 per barrel observed in March. However, the rupee experienced a slight depreciation of about 45 paise against the dollar during the same period, settling at Rs278.65. Despite this, the overall impact is estimated to result in a reduction of approximately Rs5 per litre in petrol prices, which currently stand at Rs295.
Similarly, HSD prices have seen a decline of approximately $5 per barrel in the international market, while the import premium, borne by Pakistan State Oil, remained unchanged at $6.50 per barrel. Consequently, the expected decrease in HSD rates ranges from Rs8 to Rs8.50 per litre, subject to final exchange rate adjustments and IFEM considerations, from the existing rate of Rs290.38 per litre at the depot stage.
Officials noted that the international market prices for petrol and HSD have dropped to $96.6 and $97.5 per barrel, respectively, signalling favourable conditions for price reductions.
This anticipated reduction in fuel prices comes after the government’s decision almost a fortnight ago to increase the prices of petrol and HSD by Rs4.53 and Rs8.14 per litre, respectively, for the fortnight ending April 30.
With the government already reaching the maximum permissible limit of Rs60 per litre in petroleum levy on both petrol and HSD, consumers can look forward to some relief at the pumps in the coming days.
