Slight Reduction Expected in Fuel Prices
Starting November 1, the prices of petrol and diesel in Pakistan may decrease by Rs2 to Rs3 per litre. This follows a small drop in global oil prices over the past two weeks, as reported by market insiders. The new rates are pending final calculations based on the exchange rate and existing tax levels.
Key Points:
- Projected Price Changes: Petrol prices are expected to decrease by approximately Rs3 per litre, while high-speed diesel may see a Rs2.30 per litre reduction.
- International Market Influence: Over the last fortnight, global petrol prices dropped from about $77.5 to $76 per barrel, while diesel fell from $86.5 to $84 per barrel.
- Stable Import Premium and Exchange Rates: Import premiums for petrol and diesel held steady at $8.7 and $5 per barrel, respectively. The exchange rate also remained stable.
Current and Previous Fuel Pricing
Currently, the ex-depot price for petrol is Rs243.03 per litre, and for HSD, it stands at Rs251.29 per litre. This slight expected reduction follows the government’s recent decision on October 15 to raise diesel prices by Rs5 per litre, keeping petrol prices unchanged. This increase, the first in three months, was driven by minor fluctuations in the global oil market.
Impact on Different Sectors
The reduction in fuel prices could bring some relief, particularly to:
- Private Transport and Small Vehicles: Petrol, predominantly used in motorcycles, rickshaws, and small cars, affects the everyday budget of the middle and lower-middle class.
- Heavy Transport and Agriculture: Diesel is critical for trucks, buses, and agricultural machinery. Its price impacts the cost of transporting goods and produce, influencing overall market prices for essentials.
Breakdown of Fuel Pricing
The current fuel price structure includes several key cost factors:
- Taxes: About Rs76 per litre, which includes Rs60 in petroleum development levy (PDL) and Rs16 in customs duties.
- Distribution and Sale Margins: Approximately Rs17 per litre, paid to oil companies and dealers for distribution and sales.
Final Notification Pending
The new fuel rates will be officially confirmed on November 1, following the government’s formal notification.
