Govt likely to Cut Petrol Prices by Rs 3 Per Litre from 1st August

ISLAMABAD – The federal government is likely to reduce petrol prices by Rs 3 per litre for the first half of August, according to sources.

High-speed diesel (HSD) prices are also set to drop by around Rs 8.50 per litre, while kerosene oil prices could slide by Rs 9.11 per litre. The Oil and Gas Regulatory Authority (OGRA) will send a summary to the government reflecting these changes, which align with global market trends. The official announcement is expected at midnight on July 31, 2024, and the new prices will take effect from August 1, 2024.

Recent international market trends have influenced this potential decrease. Over the last fortnight, petrol prices dropped by approximately $2 per barrel, and HSD prices fell by $3 per barrel. The average price of petrol on the international market decreased to $87.50 from $89.50 per barrel, while HSD dropped to $94 from about $96.93 per barrel. Additionally, import premiums for petrol decreased to $8.80 from $9 per barrel, and HSD fell to $5 from $6.50 per barrel. The exchange rate has remained stable during this period.

Update: Latest Petrol Price in Pakistan

Amid these changes, the government has increased the maximum petroleum levy to Rs 70 per litre in the current Finance Bill. This move aims to collect Rs 1.28 trillion in the upcoming fiscal year, up from Rs 960 billion collected last year.

Currently, the ex-depot price for petrol stands at Rs 275.60 per litre, and Rs 284 per litre for HSD. With the proposed adjustments, petrol prices are expected to stabilize above Rs 272 per litre, and HSD could approach Rs 275 per litre, assuming there are no further increases in the petroleum levy.

Weekly inflation, however, has seen a slight increase of 0.17 percent, adding a layer of complexity to the economic landscape. The anticipated price cuts in petroleum products might offer some relief to consumers and help curb inflationary pressures in the coming weeks.

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