The interim government has announced a reduction in petrol prices by Rs2.04 per litre for the upcoming two weeks.
According to the notification, the adjusted prices, effective from midnight on November 16 until November 30, are as follows:
- Petrol: Rs281.34 (previous: Rs283.38) – Decrease: Rs2.04
- High-Speed Diesel (HSD): Rs296.71 (previous: Rs303.18) – Decrease: Rs6.47
- Kerosene Oil: Rs204.98 (previous: Rs214.85) – Decrease: Rs6.05
- Light Diesel Oil: Rs180.45 (previous: Rs192.86) – Decrease: Rs9.01
The Finance Division, in a statement, highlighted that these adjustments were made based on the recommendations of the Oil and Gas Regulatory Authority (OGRA). This reduction comes after two consecutive fortnightly reviews where fuel prices remained unchanged.
The caretaker government, currently imposing zero general sales tax (GST) on all petroleum products, maintains a petroleum levy (PL) rate of Rs60 per litre on petrol and diesel. This move follows the government’s decision on October 16 to reduce petrol prices by Rs40 per litre and HSD by Rs15 per litre.
Of particular significance is the reduction in the price of high-speed diesel, widely used in transportation and agriculture. This decrease is anticipated to have a positive impact on inflation, providing relief to farmers during the ongoing crop-harvesting season.
Two days earlier, MediaBites reported that residents in Pakistan may soon experience a welcome decline in fuel prices, as forecasts suggest a potential reduction of up to Rs. 10 per liter. The initial estimates indicate a potential decrease of Rs. 10 for High-Speed Diesel and Rs. 8 for MS Petrol, set to take effect from November 15.
If international prices continue their favorable trend in the coming days, local consumers might witness a dip in petrol and diesel rates, reaching an estimated Rs. 275.38 and Rs. 293.18, respectively, in the fortnightly pricing from November 15, 2023.
However, it’s essential to note that the recent drop in global fuel prices may face some resistance from the depreciation of the Pakistani Rupee since October 15, resulting in a loss of Rs. 10.2 against the US dollar.
Interestingly, High-Speed Diesel (HSD) has become more affordable, with a decrease of approximately $8-9 per barrel on average, reaching $104 per barrel during the week. Similarly, petrol experienced a decline of $1, settling at $90.