ISLAMABAD: Following a slight drop in worldwide prices, it is anticipated that the prices of the two main petroleum products, gasoline and high speed diesel (HSD), will drop by Rs2 to Rs3 per liter starting on November 1 and lasting for two weeks.
According to knowledgeable sources, during the past two weeks, the average price of gasoline and HSD dropped by roughly $1.5 and $2.5 per barrel, respectively, on the global market. Petrol and HSD prices are expected to decrease by Rs3 and Rs2.30 per litre, respectively, depending on the final exchange rate computation and current tax rates.
Following government notification, the new prices will go into effect on November 1.
According to officials, the average price of gasoline on the global market has decreased from roughly $77.5 per barrel to roughly $76 per barrel. In the past two weeks, the HSD has also dropped from $86.5 to roughly $84 per barrel.
The import premium for gasoline and HSD stayed mostly constant at $8.7 and $5 per barrel, respectively, for the past two weeks. Additionally, the exchange rate remained stable.
The current price of HSD is Rs251.29 per litre, while the ex-depot price of petrol is Rs243.03 per liter.
While the price of gasoline remained at Rs247.03 until the end of this month, the government raised the price of diesel by Rs5 per litre earlier on October 15. Petroleum product prices have been steadily declining due to the declining prices in the global market, but this was the first increase in three months.
Petrol directly affects middle- and lower-middle-class budgets and is primarily utilized in private transportation, small cars, rickshaws, and two-wheelers.
HSD powers the majority of the transportation industry. Since it is mostly utilized in heavy machinery, railroads, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, its cost is regarded as inflationary. In particular, it raises the cost of vegetables and other consumables.
Currently, the government taxes gasoline and HSD at a rate of roughly Rs76 per litre. For both products, the government charges a customs duty of Rs16 per litre and a PDL of Rs60 per litre. Additionally, oil corporations and their dealers receive distribution and sale margins of around Rs17 per litre.
