Component-wise breakdown of petrol price in Pakistan

As the government of Pakistan on Friday announced the prices of petroleum products for the next fortnight, Business Recorder takes a look at the component-wise breakdown.

While the authorities kept petrol price unchanged at Rs262 per litre, the component-wise breakdown saw a massive difference.

The ex-refinery price saw a major decline of Rs7.51 per litre which gave the government the space to hike petroleum development levy (PDL) by Rs5 per litre to Rs55.

The uptick in PDL comes on the back of a fresh $3 billion stand-by arrangement (SBA) reached with the International Monetary Fund (IMF) for next 9 months by the government of Pakistan. One of the conditions agreed under the programme is to increase the ceiling of PDL from previous Rs50 per litre to Rs60. The Rs5 per litre increase is made to fulfil this key condition.

Moreover, the IFEM, OMC and dealer margins rose Rs2.51 per litre as they increased from Rs16.69 to Rs19.2.

These prices will remain in effect till July 15.

Meanwhile, the second shipment of Russian oil reached Pakistan in the outgoing week.

State Minister for Petroleum Musadik Malik said that “the oil from first shipment is being processed in refineries”.

The development is expected to drive a reduction in prices of petroleum products in Pakistan.