ISLAMABAD – The Pakistani government has adjusted the exchange rate used for calculating petroleum product prices, effective from September 16, 2024. This move led to a slight reduction in the cost of petrol, with minimal impact on high-speed diesel (HSD) prices.
According to official sources, the Pakistan State Oil (PSO) implemented an exchange rate adjustment of Rs 3.13 per litre for petrol, while HSD saw a marginal reduction of 66 paisa per litre for the fortnight ending September 15, 2024. This adjustment is part of the government’s regular price review mechanism to align local fuel costs with international market trends.
The exchange rate adjustment for PSO added Rs 1.46 per litre to the cost of petrol, down from the previous adjustment of Rs 1.67 per litre in the last fortnight. On the other hand, the HSD adjustment ended with a 66-paisa reduction per litre.
Despite the exchange rate adjustment, prices for both petrol and HSD decreased due to lower international prices. The average cost of petrol based on the Platts benchmark, including duties and incidentals, dropped by Rs 11.46 per litre over the past two weeks, reducing the price from Rs 173.13 to Rs 161.67 per litre. Similarly, the price of HSD saw a significant decrease of Rs 12.18 per litre, from Rs 180.92 to Rs 168.74 per litre.
As a result, ex-refinery prices for petrol dropped by Rs 10 per litre, from Rs 174.80 to Rs 164.80 per litre, while HSD prices fell by Rs 12.84 per litre, from Rs 181.58 to Rs 168.74 per litre. These reductions have provided some relief to consumers amid rising inflation.
The Inland Freight Equalisation Margin (IFEM) remained unchanged at Rs 7.79 per litre for petrol and Rs 4.44 per litre for HSD.
In light of these adjustments, the price of petrol has been reduced by Rs 10, bringing it down from Rs 259.10 to Rs 249.10 per litre. The rate of HSD has also decreased by Rs 13.06, from Rs 262.75 to Rs 249.69 per litre. Similarly, kerosene prices have been cut by Rs 11.15, from Rs 169.62 to Rs 158.47 per litre, and the price of light diesel oil dropped by Rs 12.12 per litre, now standing at Rs 149.13 compared to the previous Rs 154.05.
