Petrol price reduces by Rs 14 n diesel by Rs 9 wef May 16

ISLAMABAD (May 16): The ex-depot petrol rate may decline by Rs 13.40 per litre and high-speed diesel (HSD) by Rs 8.19 per litre for the next fortnight starting from May 16, according to an estimate.

The premium on petrol is expected to be around $10.30 per barrel and $6.50 per barrel on HSD, while the exchange rate adjustment is expected to be 12 paisa. However, there are still three days left for the announcement of new prices.

The global prices have massively tumbled after stability returned to the Middle East following the Iran-Israel missile attacks and a reduction in tension in the Red Sea. Globally, petrol prices have fallen by $6.32 per barrel to $99.93, indicating a positive market shift.

The prices of kerosene oil (KERO) are likely to reduce by Rs 9.49 per litre and light diesel oil (LDO) by Rs 6.54 per litre.

If the government allows the reduction as per estimates, the price of petrol would come down to Rs 275.09 per litre from the current rate of Rs 288.49 per litre, the price of HSD would reduce from Rs 281.96 to Rs 273.77 per litre, the price of KERO would come down to Rs 173.85 from Rs 183.34, and LDO price would be Rs 164.12 from Rs 170.66 per litre.

The government is charging a petroleum levy of Rs 60 per litre on both petrol and HSD and is projected to collect Rs 936 billion in the current fiscal year against a budgeted target of Rs 869 billion.

The government anticipates that the reduction in the price of petroleum products would help increase the sale price and consumption of petroleum products, which dropped by 4 percent on a month-on-month basis in April 2024 and 6 percent on a year-to-year basis. While the Oil and Gas Regulatory Authority (OGRA) has not yet submitted a formal summary to the Finance Division, preliminary reports suggest that it is likely to recommend a decrease in petrol and diesel prices for the second half of May 2024.

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