KARACHI: In a move likely to bring relief to consumers, the federal government is expected to decrease the prices of petrol and High-Speed Diesel (HSD) by Rs. 9 and Rs. 5 per liter, respectively, on June 15, 2024. This adjustment comes in response to a decline in international oil prices over the current fortnight.
Global prices for MS petrol and HSD have dropped by $3.75 and $2.7 per barrel, respectively. Additionally, the import premium on petrol has fallen to $9.5, while the Pakistani rupee has remained stable at 278 against the dollar despite recent volatility.
With these factors considered, the price of HSD in Pakistan is expected to decrease to Rs. 265.22 per liter, while MS petrol rates are projected to fall to Rs. 259.36 per liter.
During the last fortnightly review of petroleum prices on June 1, the government had already reduced the price of petrol by Rs. 4.74 per liter and HSD by Rs. 3.86 per liter.
However, it is important to note that the federal government has proposed a 5 percent sales tax on petroleum products in the 2024-25 federal budget. Additionally, it has recommended raising the maximum petroleum levy on petrol and high-speed diesel to Rs. 80 per liter, an increase of Rs. 20 per liter from the previous rate. If approved, this would also increase the levy on Light Diesel Oil (LDO), High Octane Blending Component (HOBC), and E-10 gasoline by Rs. 25 per liter, setting the new rate at Rs. 75 per liter.
The anticipated price reductions are expected to provide some financial relief to consumers as Eid approaches, balancing the recent increases in taxes and levies proposed in the federal budget.
