For the fourth consecutive fortnight, the government is set to reduce petrol and high-speed diesel (HSD) prices by approximately Rs10 per litre from September 15, pending adjustments in the petroleum levy.
Recent global market trends have led to a $5 per barrel drop in petrol and HSD prices. Considering current exchange rates and tax policies, domestic prices could decrease by Rs10-11 per litre.
The government, however, might raise the petroleum levy by Rs5 per litre. This move aims to offset a Rs100bn revenue shortfall from the Federal Board of Revenue (FBR) in the first two fiscal months, potentially reducing the price cut to about Rs5-6 per litre.
Officials report a decline in the average international petrol price from roughly $81 to less than $76 per barrel, with HSD prices falling from $88.5 to about $83 per barrel. The import premiums and exchange rates have remained stable.
Currently, petrol and HSD are priced at Rs259.1 and Rs262.75 per litre, respectively. After a recent review on September 1, the government lowered these prices by Rs1.86 for petrol and Rs3.32 for HSD, totalling a reduction of Rs16.50 and Rs19.88 per litre over the last three fortnights.
In contrast, petrol prices rose by Rs17.44 and HSD by Rs15.74 in early July. Between May 1 and June 15, prices dropped by about Rs35 for petrol and Rs22 for HSD.
