In response to the recent drop in global crude oil prices, the federal government plans to lower prices for petroleum products. Sources suggest potential cuts of up to Rs 5 per litre for petrol and diesel.
Detailed Price Adjustments
- Petrol prices may drop by Rs 5.04 per litre.
- Diesel prices could decrease by Rs 8 per litre.
- Kerosene and light diesel oil (LDO) might see reductions of Rs 8.03 and Rs 5.4 per litre, respectively.
Decision-Making Process The Oil and Gas Regulatory Authority (Ogra) has not yet submitted its summary. The Finance Ministry will make the final decision on these reductions after consulting with the prime minister.
Anticipated New Pricing
Projected Rates
- Petrol is expected to drop from Rs 293.94 to Rs 288 per litre.
- Diesel could go down from Rs 290.38 to Rs 282.38 per litre.
- Anticipated new prices for kerosene oil and LDO are Rs 85.05 and Rs 168.97 per litre, respectively.
Taxation and Pricing Structure
Stable Tax Margins
- The internal freight equalisation margin will stay at Rs 6.75 per litre for petrol and Rs 3.71 for diesel.
- Premium rates will remain at $9.60 per barrel for petrol and $6.50 per barrel for diesel.
Price Adjustments at the Refinery Level
Ex-Refiner Price Changes
- The ex-refiner price of petrol may fall to Rs 205.80 from Rs 210.68.
- Diesel’s ex-refiner price could decrease to Rs 202.70 from Rs 210.07.
- Kerosene and LDO prices are also expected to drop to Rs 175.46 and Rs 162.85 per litre, respectively.
Additional Charges and Economic Impact
Levies and Margins The government charges a Rs 60 per litre petroleum levy on petrol and diesel. Additionally, dealers receive a margin of Rs 8.64 per litre for both products, with district margins adding another Rs 7.87 per litre.
Regular Price Review
Biweekly Adjustments Every 15 days, the government reviews and adjusts petroleum prices based on global oil price fluctuations, local currency changes, and Pakistan State Oil’s consumption and supply costs. This review process led to an increase in petrol and diesel prices by Rs 4.5 and Rs 8.1 per litre, respectively, on April 15.
