Expected Reduction in Petrol Prices from November 1: Pakistan Set for a Rs2-3 Decrease Per Litre
With a dip in global oil prices, Pakistani consumers may see a slight reduction in petroleum prices starting November 1. The government is expected to reduce petrol and high-speed diesel (HSD) prices by around Rs2 to Rs3 per litre for the next 15 days, based on recent international price trends.
Global Oil Price Dip Influences Local Market
Recent data indicates that average petrol and diesel prices in the international market have dropped by $1.5 and $2.5 per barrel, respectively, over the past fortnight. Petrol, which previously averaged $77.5 per barrel, has decreased to $76 per barrel, while HSD prices dropped from $86.5 to $84 per barrel. The import premium on petrol and diesel remains steady at $8.7 and $5 per barrel, respectively, suggesting stable import costs for Pakistan.
Potential Impact on Local Prices
Based on the current tax structure and exchange rate, petrol prices could fall by Rs3 per litre, while diesel prices might reduce by approximately Rs2.30 per litre. The current ex-depot price of petrol is Rs247.03, and diesel stands at Rs251.29 per litre. These adjustments could offer some relief to consumers amid fluctuating global oil prices and domestic economic pressures.
Tax Breakdown on Petroleum Products
The government currently collects approximately Rs76 per litre in taxes on both petrol and diesel. This includes a petroleum development levy of Rs60 and a customs duty of Rs16 per litre. Additionally, oil companies and distributors earn around Rs17 per litre through sales and distribution margins.
Fortnightly Price Adjustment Mechanism
In Pakistan, petrol and diesel prices are revised every 15 days, allowing adjustments based on the latest international market trends. The anticipated drop from November 1 reflects this mechanism, offering relief when global prices decline while adjusting for taxes and exchange rate fluctuations.
Keep an eye out for the official announcement on November 1 to confirm the new prices and take advantage of the expected reductions.
