ISLAMABAD – The government is set to announce a significant reduction in petroleum prices, potentially lowering costs by up to Rs12 per litre starting June 16.
This anticipated price cut is attributed to a $5.14 per barrel drop in global oil prices, which is likely to translate into a Rs12 per litre decrease in petrol prices in Pakistan.
Since April 16, petrol prices have already been reduced by Rs24 per litre, while diesel prices have seen a Rs20 per litre decrease.
On June 1, it emerged that the government’s last-minute decision to adjust petrol prices resulted from a strong disagreement between the prime minister and the finance minister. The finance minister urged reconsideration of the price cut amid ongoing IMF negotiations, according to insider sources.
The government has collected over Rs900 billion through the petroleum development levy (PDL) on petroleum products within the first 11 months of the current fiscal year, surpassing the annual target of Rs869 billion.
The reduction in prices led to a surge in demand for petroleum products, reaching a nine-month high of 1.4 million tons in May 2024. Total consumption for the July-May 2023-24 period reached 13.8 million tons.
PDL tax collection hit Rs907 billion in the first 11 months of FY24, projecting potential revenue of Rs990 billion to Rs1 trillion, based on a monthly average collection of Rs80-85 billion.
