Musadik Masood Malik, the Minister for Petroleum Division, told the National Assembly on Thursday that since May, the price of gasoline in the nation has dropped by Rs47.54 per litre.
“Pakistan purchases fuel at international market rate, but we receive a discount on its [premium],” Malik stated.
He said that Pakistan was buying diesel from Kuwait at an international price with a premium discount in accordance with an arrangement.
In addition to dollar-rupee parity, he noted, “sometimes we get relaxation in payment period of the fuel cost from friendly countries.” gasoline costs were also directly linked with the global market.
He stated that the value of the Pakistani rupee compared to the US dollar had stabilized since the start of the current administration.
The minister of petroleum further stated that the general population always benefited from lower fuel prices on the global market.
In order to minimize the petroleum charge, Malik stated that the government was working to gradually include wholesalers and retailers in the tax system.
“The rate of petroleum levy would decrease with an increase in tax to GDP ratio,” he stated.
In answer to a question, Malik stated that the policy maintained the nation’s gasoline and diesel inventories to meet the 21-day threshold.
Fuel and diesel prices are anticipated to drop for a fourth time in a row
According to sources who spoke with Dawn last week, unless the government raises the petroleum levy, the prices of the two main petroleum products, gasoline and high-speed diesel (HSD), are expected to decrease by about Rs10 per litre starting on September 15 and continuing for the next four weeks.
Dawn was informed by reliable sources that for the past two weeks, the price of HSD and gasoline has dropped by roughly $5 per barrel on the global market.
Petrol and HSD prices are expected to decrease by Rs10–11 per litre, depending on the final exchange rate computation and current tax rates.
To take advantage of the smaller price cushion and partially offset FBR’s Rs100 billion revenue shortfall in the first two months of the current fiscal year, the government could raise the petroleum levy rate by Rs5 per litre. The price reduction in that scenario would be roughly Rs. 5–6 per litre.
