ISLAMABAD: People are anticipating a relief from inflation in first half of December as the global crude and refined oil prices have shown a slight reduction.

Sources said that the Finance Division may not pass on the reduction in the ex-depot prices of petrol and HSD and adjust in petroleum levy (PL) by revising the rate which are at the maximum of Rs60 per litre on both petrol and HSD.

However, to enhance the ceiling from Rs60 per liter requires amendments in the Petroleum Products (Petroleum Levy) Ordinance, 1961. The levy is the prerogative of the National Assembly and an amendment would allow the federal government to raise PL on POL.

In the previous government of the PDM, a proposal was moved to transfer the power of fixing the petroleum levy, from the parliament to the Cabinet but was not approved. The interim government has budgeted Rs869 billion collection under PL.

According to an estimate of the oil marketing companies (OMCs), a substantial reduction in the petrol price by Rs6.00 per liter, and high-speed diesel (HSD) by Rs5.00 per liter is expected with effect from December 1, 2023.

The cost of kerosene oil (KERO) is also likely to slash by Rs2 per liter. The exchange rate also came down in the last 13 days.

The Oil and Gas Regulatory Authority (OGRA) will present the petroleum products working to the government on November 30.Following this, the Ministry of Finance, in consultation with the prime minister, will issue a notification regarding the revised prices.

These adjustments in petroleum product prices are expected to be effective from December 1st to 15th.

Copyright Business Recorder, 2023