Petroleum prices in Pakistan are expected to decrease by up to Rs9.7 per litre from August 1, following a drop in global oil prices, according to sources. The reduction in international oil prices has led to a decrease in the ex-refinery price of petrol by Rs9.7 and diesel by Rs3.73.
Sources confirmed that the price of petrol per barrel has dropped from $75.27 to $73.19, while the premium for petroleum has decreased from $9.61 per barrel to $6.74.
As a result, customs duties have also seen a reduction, from Rs15.33 per litre to Rs14.29 per litre. The ex-refinery price of petrol has dropped from Rs168.73 to Rs159.66 per litre.
Sources further indicated that additional adjustments to petroleum prices may be made due to exchange rate changes. The final price determination will be submitted to the Ministry of Finance on July 31, with the ministry expected to consider revenue targets when making its decision.
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Following approval from the prime minister, the Ministry of Finance is set to issue an official notification regarding the new prices. However, if the government increases the levy on petroleum products, it may reduce the level of relief that the public receives from the price reduction.
On July 16, government raised petrol and diesel prices, following a continued upward trend in global crude oil prices. Petrol price raised by Rs5.36 per litre, while diesel increased by Rs11.37 per litre.
The price of petrol increased from Rs266.79 to Rs272.15 per litre, while high-speed diesel (HSD) now costs Rs284.35 per litre, up from the previous Rs272.98.
Similarly, on July 1, federal government while adopting same measures had increased petrol and diesel prices significantly for the first fortnight of the month, attributing the hike to global market volatility amid the 12-day Iran-Israel conflict.
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