Petrol and high-speed diesel (HSD) prices in Pakistan are set to decrease by approximately Rs5 and Rs9 per litre, respectively, on Tuesday, largely due to a decline in international market prices and import premiums.
Sources report that in the past fortnight, petrol and HSD prices have dropped by around $3 and $5 per barrel. The projected price decrease for petrol is between Rs4.50 and Rs5.20 per litre. In contrast, HSD prices are expected to lower by Rs8 to Rs8.50 per litre, depending on the final calculation of the inland freight equalisation margin (IFEM).
The petrol import premium has fallen nearly 10% to $9.60 per barrel from $10.7, marking the second consecutive fortnightly decrease from a high of $13.50 per barrel in March. Despite this, the rupee depreciated by about 45 paise against the dollar during the same period, settling at Rs278.65. The anticipated net effect is a reduction of about Rs5 per litre from the current petrol price of Rs295.
Similarly, the price of HSD decreased by $5 per barrel, with its import premium remaining steady at $6.50 per barrel. The expected reduction in HSD rates is Rs8 to Rs8.50 per litre, pending final adjustments based on the exchange rate and IFEM, down from the current Rs290.38 per litre at the depot stage.
Officials noted that the international market price for petrol has decreased to $96.6 per barrel from $98.5, and HSD to $97.5 from $102.9 per barrel.
This adjustment follows a recent increase. The government raised petrol and HSD prices by Rs4.53 and Rs8.14 per litre for the fortnight ending April 30.
Additionally, the government has already applied a Rs60 per litre petroleum levy, the maximum limit allowed by law, on petrol and HSD.
