In a welcome relief for consumers, the prices of petrol and diesel are likely to decrease from August 16 for the next fortnight. This reduction comes amid lower consumption in major economies and regional factors influencing the demand for petroleum products.
According to official sources, petrol prices may decrease by Rs8.36 per liter, while diesel prices could see a reduction of Rs7.70 per liter. Additionally, kerosene oil is expected to drop by Rs7.71 per liter, and light diesel oil could be reduced by Rs4.49 per liter.
The potential decrease is attributed to several factors, including heavy rainfall in regional countries, which has led to a significant drop in the consumption of petroleum products. In India, for example, the use of diesel has plummeted, causing its price in the international market to tumble.
Despite concerns about a potential hike in petroleum prices due to geopolitical tensions, stability has been maintained in the Middle East. Iran had threatened an attack on Israel following the assassination of Hamas’s political leader Ismail Haniyeh. However, the United States’ announcement to deploy a fighter jet squadron and maintain an aircraft carrier in the region to protect Israel has helped stabilize the situation.
As a result of these developments, the price of petrol in Pakistan may be set at Rs261.07 per liter, down from the current Rs269.43. The price of high-speed diesel (HSD) is expected to decrease to Rs265.05 per liter from the existing Rs272.77. Similarly, kerosene oil is projected to be priced at Rs170.23 per liter, down from Rs177.39, and light diesel oil is likely to be set at Rs156.04 per liter, down from Rs160.53.
It’s important to note that these are preliminary figures, and the final prices will be confirmed closer to August 16, as fluctuations in the POL prices may occur due to ongoing trends in the international market.
On August 1, 2024, the government had previously reduced the petrol price by Rs6.17 per liter and high-speed diesel by Rs10.86 per liter. The internal freight margin on petrol stands at Rs7.79 per liter and HSD at Rs4.51 per liter. The premium on petrol is currently $8.48 per barrel, while the premium on HSD is $5 per barrel.
The expected reduction in fuel prices is seen as a positive development for consumers and industries alike, providing relief amidst global economic challenges and helping to manage inflationary pressures in the country.
