ISLAMABAD – Another relief for Pakistanis is expected as the government is likely to cut petrol and diesel prices in fourth consecutive fortnight review on September 15.
A report shared by a local publication suggests that prices of major petroleum products, including petrol and high-speed diesel are expected to decrease by about Rs10 per litre starting September 15, unless the government opts to raise the petroleum levy.
Global oil prices moved down by around $5 per barrel in the last couple of weeks. Considering the final exchange rates and existing tax rates, the expected price drop in Pakistan is around Rs10-11 per litre. The government might increase the petroleum levy by Rs5 per litre to take advantage of the lower international prices and address a Rs100 billion revenue shortfall for the initial two months of the fiscal year.
Officials noted that the average international price of petrol dropped to below $76 per barrel from about $81, while diesel prices moved down to around $83 per barrel from $88.5. The import premiums for petrol and diesel remained steady at $8.5 and $5 per barrel, respectively, and the exchange rate has not changed.
As of September 2024, the ex-depot price for petrol is Rs259.1 per litre and for diesel is Rs262.75 per litre. In the last price update on September 1, the government reduced petrol and diesel prices by Rs1.86 and Rs3.32 per litre, respectively. Over the past three fortnights, this amounts to a total reduction of Rs16.50 for petrol and Rs19.88 for HSD.
Drop in fuel prices are expected to further control inflation as it affects private transportation, directly impacting budgets of middle and lower-middle-class families. Diesel, used in heavy transport, trains, and agricultural machinery, affects the cost of goods and services, particularly essential items like vegetables. Despite changes in petroleum prices, these adjustments often don’t translate into lower fares or reduced costs for essentials.
Pakistan announces new Petrol price today for September; Check expected rates here
