In Islamabad, it’s anticipated that the ex-depot petrol price could decrease by Rs13.40 per liter, and high-speed diesel (HSD) by Rs8.19 per liter for the upcoming fortnight beginning May 16, based on estimates.
The expected premium on petrol is approximately $10.30 per barrel, and $6.50 per barrel on HSD, with an anticipated exchange rate adjustment of 12 paisa. However, the announcement of new prices is still pending with three days remaining.
Global prices have seen a significant drop following the return of stability to the Middle East after Iran-Israel missile attacks and a decrease in tensions in the Red Sea. Petrol prices worldwide have fallen by $6.32 per barrel to $99.93, signaling a positive market trend.
Kerosene oil (KERO) prices will likely decrease by Rs9.49 per liter, and light diesel oil (LDO) by Rs6.54 per liter.
If the government approves the estimated reduction, the price of petrol would decrease to Rs275.09 per liter from the current rate of Rs288.49 per liter, HSD price would reduce from Rs281.96 to Rs273.77 per liter, KERO price would come down to Rs173.85 from Rs183.34, and LDO price would be Rs164.12 from Rs170.66 per liter.
The government imposes a petroleum levy of Rs60 per liter on petrol and HSD and expects to collect Rs936 billion in the current fiscal year against a budgeted target of Rs869 billion.
The government hopes that the reduction in petroleum product prices will boost sales and consumption, which saw a 4% decrease on a month-on-month basis in April 2024 and a 6% decrease year-on-year. Although the Oil and Gas Regulatory Authority (OGRA) has yet to formally submit a summary to the Finance Division, initial reports suggest it may recommend a decrease in petrol and diesel prices for the second half of May 2024.
