KARACHI, Oct 26: Weakening of the dollar and stable global crude rates may trigger further cuts in prices of various petroleum products in fortnightly adjustments on October 31.

An official in a local refinery said that the petroleum prices were likely to come down in view of a stronger rupee and stable prices of crude and finished products in the international market in the current fortnight.

“I cannot give you the exact price cut, it may be reduced marginally, which would not match October 15 price cuts,” he told Dawn.

Oil Companies Advisory Committee (OCAC) will announce the new prices on October 31 for the period from November 1 to 15.

The committee had reduced the petroleum prices on October 15 by 5.5 to 11.5 per cent due to decline in the global markets and appreciation of the rupee against the dollar.

However, the war risk levy by shipping companies on imports has a marginal negative impact on the oil prices and there is a possibility of a nominal price cut, the refinery official said.

The petroleum development levy (PDL) was raised on August 31 by 50 paisa per litre and since then no change has taken place. The industry does not expect that the PDL will be enhanced due to anticipated support from bilateral and multilateral donors.

An oil analyst at Invest Cap expects price fall as the rupee has gained its average value by one per cent against the greenback in the current fortnight.

The rupee has appreciated by at least four per cent against the dollar since September 11.

“I think the price cut will range between two to four per cent, which means a slight cut of 50 paisa to one rupee per litre on petroleum products,” the analyst said.

Meanwhile, President, Karachi Transport Itehad (KTI), Irshad Bukhari, ruled out any price cut in transport fares despite cut in prices of diesel on October 15.

“We will only consider price slash, if diesel price comes down to Rs15.25 per litre from the current Rs.17.17 per litre, he said, adding “otherwise, there is no chance of cutting the transport fares.”