Government Expected to Provide Significant Relief on Petrol Prices Before Eid

Relief on Petrol Prices Before Eid

Prices of MS petrol and High-Speed Diesel (HSD) are anticipated to drop tomorrow due to a decrease in international oil prices during the current fortnight.

The federal government is likely to reduce the price of petrol by Rs. 9 per liter and diesel by Rs. 5 per liter on June 15, 2024.

Globally, the prices of MS and HSD have fallen by $3.75 and $2.7 per barrel respectively in the current fortnight. Additionally, the import premium on petrol has decreased to $9.5. Despite the volatility seen in the previous two fortnights, the Pakistani rupee has remained stable at 278.

Given these factors, it is expected that the price of HSD in Pakistan will decrease to Rs. 265.22 per liter, while the price of MS is expected to fall to Rs. 259.36 per liter.

During the last fortnightly review of petroleum prices on June 1, the government reduced the price of petrol by Rs. 4.74 per liter and the price of high-speed diesel by Rs. 3.86 per liter.

It is noteworthy that the federal government has proposed a 5 percent sales tax on petroleum products in the federal budget for 2024-25. Additionally, it has recommended increasing the maximum petroleum levy on petrol and high-speed diesel to Rs. 80 per liter, an increase of Rs. 20 per liter over the previous rate.

If approved, the levy on Light Diesel Oil (LDO), High Octane Blending Component (HOBC), and E-10 gasoline will also increase by Rs. 25 per liter to Rs. 75 per liter.