Islamabad, September 28, 2024 – Pakistan is expected to announce a reduction in petroleum prices starting October 1, 2024, in response to declining international oil prices. However, the reduction may not extend to petrol, which is likely to remain at its current price levels, according to government sources.
The decision of Pakistan government to maintain petrol prices is influenced by the existing rates of petroleum levy (PL) and general sales tax (GST) on petroleum products. With these levies in place, there is little room for a reduction in petrol prices. According to estimates, the price of petrol is expected to remain unchanged at Rs 249.10 per litre, offering no relief for motorists in the immediate future.
While petrol prices may remain steady, reductions in the prices of other petroleum products are anticipated. Pakistan is considering lowering prices for high-speed diesel (HSD), kerosene oil, and light diesel oil (LDO), driven by favorable trends in the global oil market. HSD, which is commonly used in transportation and agriculture, is expected to see a decrease of Rs 2.11 per litre, bringing the price down from Rs 249.69 per litre to Rs 247.58 per litre.
Kerosene oil, often used for household heating and lighting in rural areas, may witness a price cut of Rs 3.23 per litre, reducing its price from Rs 158.47 to Rs 155.24 per litre. Similarly, LDO, another fuel primarily used in industry, is likely to experience a minor decrease, with prices expected to drop from Rs 141.93 per litre to Rs 141.04 per litre.
These expected reductions are tied to the downward trend in international oil prices, although fluctuations in the global market could still influence final prices. Currently, the premium for petrol stands at $8.768 per barrel, while the premium for HSD is at $5 per barrel. Additionally, minimal changes in the exchange rate have been noted, further stabilizing the pricing outlook.
The potential reduction in petroleum prices could offer some relief to consumers, particularly those reliant on HSD, kerosene, and LDO. However, the unchanged petrol prices may disappoint private vehicle owners, who will continue to bear the current fuel costs. The final decision will be based on the global oil market situation in the coming days and is expected to be announced officially by the government of Pakistan by the end of September.
