Petrol and high-speed diesel (HSD) prices in Pakistan are set to decrease from August 1 due to falling international market prices and lower import premiums.
Reports indicate that petrol prices might drop by around Rs3, and HSD prices could fall by Rs8.50 for the next two weeks. The recent dip in international market prices saw petrol decrease by about $2 per barrel and HSD by $3 per barrel. These changes, combined with the current tax rates, suggest that local petrol prices may reduce by Rs2.90 per litre, and HSD prices by Rs8.50 per litre.
The international market’s average petrol price dropped to $87.50 from $89.50 per barrel, while HSD’s price fell to $94 from nearly $97 per barrel. Import premiums have also 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.
Despite these changes, the government has raised 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 last year.
The ex-depot petrol price is Rs275.60 per liter, and HSD is Rs284 per liter. With the anticipated adjustments, petrol prices are expected to stabilize above Rs272 per liter, and HSD prices could approach Rs275 per liter, provided there are no further increases in the petroleum levy.
