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ISLAMABAD: The prices of major petroleum products — petrol and high speed diesel (HSD) — are estimated to go down by Rs2 to Rs3 per litre with effect from Nov 1 for a fortnight, after a minor reduction in global prices.
Informed sources said the average prices of petrol and HSD decreased in the international market by about $1.5 and $2.5 per barrel, respectively, in the last fortnight. Depending on final exchange rate calculation and existing tax rates, the prices of petrol and HSD are projected to come down by Rs3 and Rs2.30 per litre, respectively.
New prices to take effect from Nov 1 after govt notification
Officials said the average price of petrol had dropped in the international market to about $76 per barrel from about $77.5 per barrel. The HSD also declined to about $84 per barrel from $86.5 in the last fortnight.
During the current fortnight, the import premium on petrol on both petrol and HSD remained generally stable at $8.7 and $5 per barrel, respectively. The exchange rate also stood its ground.
The ex-depot petrol price currently stands at Rs243.03 per litre and that of HSD at Rs251.29 per litre.
Earlier on Oct 15, the government had increased the price of diesel by Rs5 per litre, while the rate of petrol had been kept unchanged at Rs247.03 till the end of this month. This was the first hike in the prices of petroleum products in three months, which have been constantly going down due to the falling prices in the international market.
Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of middle- and lower-middle class.
Most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the prices of vegetables and other eatables.
At present, the government is charging about Rs76 per litre tax on both petrol and HSD. The government is charging Rs60 per litre PDL and Rs16 per litre custom duty on both products. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.
Published in Dawn, October 28th, 2024
Khaleeq Kiani is an Islamabad-based reporter for Dawn, specializing in political economy, governance, business, finance, macroeconomics and energy. He can be found on X at @khaleeqkiani.
