ISLAMABAD: A significant reduction in fuel prices is on the cards for Pakistani consumers. According to preliminary estimates, the federal government is considering slashing petrol prices by up to Rs8.36 per litre and high-speed diesel (HSD) by Rs7.70 per litre for the fortnight commencing August 16, 2024.

Kerosene oil and light diesel oil (LDO) are also in line for price cuts, with anticipated reductions of Rs7.16 per litre and Rs4.49 per litre, respectively.

These adjustments could bring petrol prices down from Rs269.43 to Rs261.07 per litre, HSD from Rs272.77 to Rs265.07 per litre, kerosene oil from Rs177.39 to Rs170.23 per litre, and LDO from Rs160.53 to Rs156.04 per litre.

The calculation is based at current taxes imposed on petroleum products.

In the fiscal year 2024-25 budget, the government raised the petroleum levy limit from Rs60 to Rs70 per litre. However, the levy has remained unchanged at PKR 60 per litre so far. On August 15, the Oil and Gas Regulatory Authority (OGRA) will send its recommendations pertaining to change in prices to the federal government for consideration.

Copyright Business Recorder, 2024