In a significant market shift, fuel prices are poised for a substantial drop starting May 16. The forecasted reductions are Rs13.40 per litre for petrol and Rs8.19 per litre for high-speed diesel (HSD).
This price adjustment comes on the heels of a global price slump, with petrol prices dipping by $6.32 per barrel to $99.93. The easing of geopolitical tensions in the Middle East, particularly the cessation of Iran-Israel missile attacks, and a calmer Red Sea region have contributed to this downward trend.
Kerosene oil (KERO) and light diesel oil (LDO) are also expected to follow suit, with reductions of Rs9.49 and Rs6.54 per litre respectively. If these estimates hold true, consumers can expect petrol prices to drop from the current Rs288.49 to Rs275.09 per litre. Similarly, HSD would decrease from Rs281.96 to Rs273.77 per litre, KERO from Rs183.34 to Rs173.85, and LDO from Rs170.66 to Rs164.12 per litre.
However, these reductions are subject to the final decision by the Ministry of Finance, which will be made on May 15, taking into account the OGRA summary.
It’s worth noting that the government continues to impose a petroleum levy of Rs60 per litre on both petrol and HSD. This levy is projected to generate Rs936 billion in the current fiscal year, surpassing the budgeted target of Rs869 billion.
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