ISLAMABAD: The federal government announced a substantial reduction in prices of petroleum products on Sunday, effective September 16, 2024. A decrease up to Rs 13.06 per litre was made possible without changing the current levels of the petroleum levy (PL) or General Sales Tax.

The rate of petrol was reduced by Rs 10 per litre, from Rs 259.10 to Rs 249.10. High-Speed Diesel (HSD) price was decreased by Rs 13.06 per litre, from Rs 262.75 to Rs 249.69.

Kerosene oil rate was cut by Rs 11.15 per litre, from Rs 169.62 to Rs 158.47. The price of light diesel oil (LDO) was reduced by Rs 12.12 per litre, from Rs 154.05 to Rs 141.93.

According to the Finance Division, the price reduction was driven by a decline in international petroleum prices. Crude oil prices fell from approximately $81 per barrel to less than $76 per barrel for petrol, while HSD prices dropped from $88.5 per barrel to around $83 per barrel.

The import premium for petrol and HSD remained relatively stable during this period at $8.5 and $5 per barrel, respectively. Additionally, the exchange rate remained within a certain range.

Sources said the government’s decision of massive cut in petroleum prices will help boost the sale/ consumption of petroleum products, which has dropped significantly.

Copyright Business Recorder, 2024