In a welcome relief to the masses, the prices of petrol and diesel are expected to decline in the next fortnight in Pakistan. According to sources, the prices of petrol and high-speed diesel (HSD) are projected to drop by up to Rs9.20 per litre, mainly due to lower international prices.
The decrease in international prices, which have fallen by over $3 per barrel in the last fortnight, has led to a reduction in the prices of petroleum products in Pakistan. The average international petrol price has dropped to $84 per barrel, while HSD has declined to about $91 in the last fortnight.
As a result, the petrol price is expected to come down by Rs8.50-9.30 per litre, and HSD by Rs8-9 per litre. Additionally, kerosene and light diesel oil are estimated to become cheaper by Rs10 and Rs5 per litre, respectively.
This reduction in petroleum prices will directly benefit the middle and lower middle classes, who rely heavily on petrol for private transport. Moreover, the transport sector, which mainly uses high-speed diesel, will also benefit from the decrease in prices.
However, it’s important to note that the drop in petroleum prices may not always be reflected in fares and prices of essential commodities. The government has jacked up the maximum limit of petroleum levy to Rs70 per litre in the finance bill to collect Rs1.28 trillion in the next fiscal year.
Currently, the government is charging about Rs78 per litre tax on petrol and HSD. Although the general sales tax (GST) is zero on all petroleum products, the government charges Rs60 per litre petroleum development levy (PDL) on both products that normally impact the masses.
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