If the government maintains current tax rates, i.e., Petrol Levy (PL) of Rs. 32.42/liter and 0% Sales Tax, the petrol price in Pakistan may reduce by Rs. 11 from October 15. However, rates of other petroleum products, including high-speed diesel (HSD), are expected to go up by Rs. 5 to Rs. 12/liter for the next fortnight.
As per current tax rates, the ex-depot price of petrol is estimated to reduce by Rs. 10.75 coming down to around Rs. 214. On the contrary, the cost of HSD is expected to see a jump of Rs.11.50/liter taking the price to Rs. 247. Likewise, the rates of kerosene oil and light diesel oil (LDO) are expected to increase by Rs. 4.50 and Rs. 7.50 to approximately Rs. 196 and Rs. 194/liter, respectively.
Global Petroleum Prices
Although the crude oil price in the international market has come down in the last couple of weeks because of refining capacity constraints, refining margins and premiums on HSD had increased during the same period, leading to a higher cost impact on HSD imports in Pakistan.
Meanwhile, the crude oil price has again started to increase after the major oil exporting countries announced production cuts. However, these would translate to a price change in Pakistan from November 1.
Current Petrol Price in Pakistan
On September 30, newly appointed Finance Minister Ishaq Dar announced a massive slash of Rs. 12.63 in petrol price in Pakistan
After that reduction:
- Petrol now costs Rs. 224.80/liter from the previous rate of Rs. 237.43/liter.
- Meanwhile, the price of HSD was dropped by Rs. 12.13/liter, after which the new price is Rs. 235.30/liter.
- Similarly, LDO and kerosene oil prices decreased by Rs. 10.19 and Rs. 10.78, respectively. Kerosene oil now costs Rs. 191.83/liter, while the new price of light-speed diesel is Rs. 186.50/liter.
What do you think about the possible drop in petrol price in Pakistan? Please share your thoughts in the comments section.
