ISLAMABAD: The federal government is likely to announce a reduction in fuel prices for the third consecutive fortnight, starting from September 1, 2024. According to sources, a decrease of Rs 3.10 per liter is expected for petrol and Rs 2.50 per liter for high-speed diesel (HSD).

The decision is largely influenced by the declining trend in international petroleum product prices.

The government is currently finalising the exact figures, taking into account the current petroleum levy and general sales tax rates.

Breakdown of the proposed price changes:

Petrol: A decrease of Rs3.10 per liter from Rs 260.96 to Rs 257.86.

High-Speed Diesel (HSD): A decrease of Rs 2.50 per liter from Rs 266.07 to Rs 263.57.

Kerosene Oil: A decrease of Rs 1.39 per liter from Rs 171.77 to Rs 170.38.

Light Diesel Oil (LDO): A decrease of Rs 1.96 per liter from Rs 157.02 to Rs 155.06.

The anticipated price cuts are a direct result of the recent drop in global oil prices. Over the past two weeks, crude oil prices have fallen by approximately $ 2 to $ 2.30 per barrel.

The average price of petrol has dropped from $ 82.50 to $ 80.40 per barrel, while HSD has decreased from $ 90.30 to $ 88 per barrel.

Premium on petrol has stood at $ 8.47 per litre and $ 5 per litre on HSD.

If approved, these price cuts will provide some relief to consumers and businesses grappling with the rising cost of living and operating expenses.

However, the government’s decision will ultimately depend on a thorough assessment of various economic factors and the impact on the revenue collection.

Copyright Business Recorder, 2024