ISLAMABAD: The Finance Division has allowed Pakistan State Oil (PSO) Rs1.72 per litre exchange rate adjustment on high-speed diesel (HSD) and Rs2.41 per litre on petrol for August 1, 2024.

Average of Platts with incidental and duty has been reduced on HSD by Rs9.48 per litre from Rs199.55 to Rs190.48 per litre. On petrol it has been reduced by Rs3.85 per litre from Rs188.89 per litre to Rs185.04 per litre.

As a consequence, the ex-refinery rate of HSD has been reduced fromRs202.61 to Rs191.80 per litre and Rs6.26 per litre on petrol from Rs191.30 to Rs185.04 per litre. The government has also adjusted the Import Equalization Margin (IFEM) for both products. IFEM margin on petrol has been increased by 9 paisa from Rs7.79 to Rs7.88 per litre and 5 paisa from Rs4.51 to Rs4.46 per litre.

There is no change in petroleum levy (PL) on petrol and HSD. The government maintains Rs60 per litre PL on both products.

On Wednesday, Prime Minister Shehbaz Sharif had approved a cut in the price of HSD by Rs10.86 per litre. The price of petrol had been reduced by Rs6.17 per litre, kerosene oil by Rs6.32 per litre, and light diesel oil (LDO) by Rs5.72 per litre.

The price cut had been recommended by the Oil and Gas Regulatory Authority (Ogra), based on fluctuations in the international market and current level of taxes and duties on petroleum products.

Copyright Business Recorder, 2024