Petrol price in Pakistan is expected to drop by roughly Rs7.50 per liter according to oil price estimates from energy experts. While the price of High-Speed Diesel (HSD) may fall by Rs12.37 per liter in the second half of December 2022.
If the government imposes the Petroleum Levy (PL) and fixes the deficiencies of currency loss on a Free on Board (FOB) basis, there would be no drop in petrol and HSD prices in the following two weeks.
According to sources, the price of petrol would fall by Rs7.50, from Rs224.80 to Rs217.30 per liter, whereas the price of HSD will fall by Rs12.37, from Rs235.30 to Rs222.93 per liter.
Petroleum Sector sources revealed, the government is planning to raise the tax on HSD, Superior Kerosene Oil (SKO), and Light Diesel Oil (LDO). It is also possible that the arrears of currency damage in fuel prices would be compensated during the second part of December.
If somehow the government raises the PL and fixes the arrears of currency loss, the price of gasoline and HSD is less likely to fall. The government has promised the International Monetary Fund (IMF) that it will apply general sales tax (GST) on petroleum products after they have surpassed the maximum PL limit of Rs50 per liter.
Moreover, the government charges a PL of Rs50 per liter for petrol, Rs25 for HSD, Rs7.01 for SKO, and Rs15.39 for LDO. The government, on the other hand, has guaranteed the foreign lender that the PL on HSD will be raised to Rs50 by April 2023.