ISLAMABAD: Petrol prices are estimated to decline by Rs 13.40 per litre and high-speed diesel (HSD) by Rs8.19 per litre for the next fortnight starting from May 16th.

A premium of around $10.30 per barrel on petrol and $6.50 per barrel on HSD is expected, with an exchange rate adjustment of 12 paisa.

However, the official announcement is still two days away.

Petrol price slashed by Rs5.45, diesel’s by Rs8.42

Global oil prices have significantly decreased after tensions in the Middle East eased following the Iran-Israel missile attacks and the calming of Red Sea tensions. Reflecting this positive shift, global petrol prices have fallen by $6.32 per barrel to $99.93.

Kerosene oil (KERO) prices are likely to decrease by Rs9.49 per litre and light diesel oil (LDO) by Rs6.54 per litre.

If the government approves these estimated reductions, petrol prices would drop from Rs288.49 to Rs275.09 per litre, HSD from Rs281.96 to Rs273.77 per litre, KERO from Rs183.34 to Rs173.85 per litre, and LDO from Rs170.66 to Rs164.12 per litre.

The government currently charges a petroleum levy of Rs60 per litre on both petrol and HSD. It is projected to collect Rs936 billion in petroleum levy this fiscal year, exceeding the budgeted target of Rs869 billion.

The government anticipates that lower fuel prices will increase sales and consumption of petroleum products, which dropped by four per cent month-on-month and six per cent year-on-year in April 2024.

Copyright Business Recorder, 2024