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Petrol prices in Pakistan are expected to Reduce by up to Rs10 per liter, and diesel prices are expected to fall by Rs2 per liter over the next 15 days beginning January 15. This adjustment is influenced by a number of factors, including a global drop in petroleum prices, a strengthening of the Pakistani rupee against the US dollar, and a reduction in the premium on petroleum products.
The current price of petrol in Pakistan is Rs267.34 per liter, and diesel is Rs 276.21 per liter. Over the last 15 days, there has been a significant drop in global petroleum product prices, an increase in the value of the rupee against the dollar, and a decrease in the premium associated with purchasing petrol.
During the mentioned period, the global market saw a drop in petrol prices from $84.50 per barrel to $83 per barrel, and diesel prices fell from $97 per barrel to $95.85 per barrel. At the same time, the Pakistani rupee appreciated against the US dollar, settling at Rs280.40 on the last trading day of the week, compared to around Rs283 in the previous week.
As a result, there is a strong likelihood that petrol prices would fall by at least Rs9 per liter, while diesel prices may fall by Rs2 per liter, and kerosene and light diesel oil costs may fall by around Rs2 per liter.
It is worth noting that the government currently collects the maximum allowed petroleum levy of Rs60 per liter on both petrol and diesel. The government initially set a budget target of Rs869 billion through petroleum levy with the IMF for fiscal year 2024, but this target is expected to exceed Rs950 billion by the end of June.
The government currently imposes about Rs82 per liter in taxes on both petrol and diesel, with a zero general sales tax on all petroleum products. However, the government collects Rs 60 per liter in petroleum development levy and Rs 50 per liter in levy on diesel, high octane blending component, and 95 research octane number (RON) petrol.