After two consecutive price hikes, the costs of petrol and high-speed diesel (HSD) are expected to decrease by around Rs. 2.90 and Rs. 8.50 per liter, respectively, starting August 1 for the next two weeks. This reduction is attributed to lower international market prices and import premiums.
The prices of these key products have reportedly dropped by approximately $2 and $3 per barrel in the international market over the past two weeks. Depending on the final calculation and existing tax rates, the price of petrol is projected to decrease by Rs. 2.90, while HSD is expected to fall by Rs. 8.50 per liter.
Officials noted that the average price of petrol in the international market had declined from $89.50 to $87.50 per barrel. Similarly, HSD’s price dropped from about $96.93 to $94 per barrel in the same period. Additionally, the import premium on both products has decreased; for petrol, it fell from $9 to $8.80, and for HSD, it declined from $6.50 to $5 per barrel. Meanwhile, the exchange rate movement remained relatively stable during this time.
The government has raised the maximum limit of the petroleum levy to Rs. 70 per liter in the current Finance Bill, aiming to collect Rs. 1.28 trillion in the next fiscal year, compared to Rs. 960 billion collected in the previous fiscal year, which exceeded the Rs. 869 billion budget target by nearly Rs. 91 billion.
Currently, the ex-depot price of petrol is Rs. 275.60 per liter, and HSD is Rs. 284 per liter. With the new rates, petrol is expected to remain above Rs. 272, while the HSD rate may approach Rs. 275 per liter, assuming the government does not increase the petroleum levy rate.
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That’s not a decrease since the increase was 10 rs
Govt actually failed to increase the rupee value despite cosmetic and false claims about inflation and growth. They can maximum make the figures looking good on papers to impress IMF rather than people with minds.