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ISLAMABAD: The federal government is considering a significant reduction in ex-depot prices for petroleum products.

High-speed diesel (HSD), kerosene oil, and light diesel oil (LDO) could see a decrease of Rs3.97 per litre, while petrol is projected to increase by 81 paisa per litre with effect from December 15, 2024.

The Inland Freight Equalization Margin (IFEM) rates for petrol and HSD are projected to be Rs7.92 and Rs4.15 per litre, respectively.

Petrol price is projected to be raised by 81 paisa from Rs252.10 to Rs252.91 per litre, whereas, the price of HSD may be reduced by Rs3.90 per litre from Rs258.43 to Rs254.53 per litre. Kerosene oil may be reduced by Rs3.97 per litre from Rs164.98 to Rs161.01 per litre, and LDO may be reduced by Rs3.55 per litre from Rs151.73 to Rs148.18 per litre.

The premium of petrol settled at $8.84 per bbl which was $9.80/bbl in last review ended on November 30, 2024.

Still three days left for final announcement of petroleum products prices.

Reduction in petroleum products may help government to get monthly target of petroleum levy (PL) by increasing consumption. The PL collections climbed to Rs110 billion in November 2024, reflecting a 19 percent year-on-year and seven percent month-on-month increase.

Cumulatively, PL collections during fifth month of fiscal year 2024 reached Rs464 billion, marking a 16 percent YoY growth.

Pakistan’s petroleum sales surged to a 25-month high in November 2024, reaching 1.58 million tonnes.

Copyright Business Recorder, 2024

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