ISLAMABAD (Daily Point) — The government is ready to implement a substantial reduction in the prices of petroleum products by over Rs10 per liter on December 15, extending for the next fortnight.
This move is primarily attributed to the recent decline in international market rates.
According to reports, both High-Speed Diesel (HSD) and petrol have experienced a nearly 5% decrease in international prices over the past two weeks. Simultaneously, the rupee has exhibited a slight strengthening against the US dollar. These combined factors are expected to lead to a significant drop in domestic fuel prices for consumers.
Specifically, officials highlight that the average price of HSD has witnessed a decrease of approximately $4 per barrel, declining from around $99.50 to $95.50 in the past week. Similarly, the price of petrol has seen a decrease from $86.5 to $81.7.
Moreover, the rupee has displayed improvement against the dollar, shifting from Rs285.5 to Rs284 as of December 1. Notably, the benchmark Brent oil has observed a decline from $79 per barrel to $73 during this period.
As a consequence of these developments, it is estimated that HSD prices will be at least Rs12 per liter cheaper, while petrol prices are anticipated to decrease by a minimum of Rs10 per liter. Projections also indicate reductions in the prices of kerosene and light diesel oil by Rs7 and Rs13, respectively.
It is noteworthy that the government has already reached the maximum permissible limit of Rs60 per liter for the petroleum levy, as mandated by the law. Despite a budget target of Rs869 billion for petroleum levy collection in FY24, set in collaboration with the International Monetary Fund (IMF), there is optimism that the actual collection may exceed Rs950 billion by the end of June.
