ISLAMABAD: For the fourth fortnight in a row, the government on Sunday slashed prices of petrol and high-speed diesel (HSD) by around Rs10 and Rs13.06 per litre, respectively, with immediate effect till Sept 30, mainly because of lower international market.

The government also cut light diesel and kerosene oil prices by Rs12.12 and Rs11.15 per litre, respectively.

In a late night announcement, the Ministry of Fina­nce said Ogra had worked out the consumer prices of petroleum products, based on the price variations in the international market. As such, the ex-depot prices of both petrol and diesel have slipped below Rs250 per litre mark.

The ex-depot petrol price was thus cut to Rs249.10 for the next fortnight from Rs259.10 at present, down by 3.86pc (Rs10 per litre). In the retail market, petrol would, however, be available at around Rs250 per litre.

On the other hand, the ex-depot price of HSD was slashed by Rs13.06 (4.97pc) to Rs249.69 per litre for next 15 days.

The government also announced Rs11.15 and Rs12.12 per litre cut in the price of kerosene oil and in the ex-depot price of light diesel to Rs158.47 and Rs141.93 per litre, respectively.

Informed sources said the prices of petrol and HSD decreased in the international market by more than $5 per barrel in the last fortnight.

Officials said the average price of petrol had dropped in the international market to about $75 per barrel from about $81 per barrel. The HSD also declined to about $82 per barrel from $88.5 in the last fortnight. During the current fortnight, the import premium on petrol on both petrol and HSD remained generally stable at $8.5 and $5 per barrel, respectively. On the other hand, the exchange rate remained range bound.

On the last pricing review with effect from September 1, the government had reduced the petrol and HSD prices by Rs1.86 and Rs3.32 per litre, respectively. Thus, the total reduction in petrol and HSD prices in four fortnights has amounted to Rs26.50 and Rs32.94 per litre, respectively.

The prices of petrol and HSD had witnessed an increase of Rs17.44 and Rs15.74 per litre, respectively in the month of July. Earlier between May 1 and June 15, the prices of both petrol and HSD had been reduced by about Rs35 per litre and Rs22 per litre, respectively.

At present, the government is charging about Rs76 per litre tax on both petrol and HSD. Although, general sales tax is zero on all the petroleum products, the government is charging Rs60 per litre PDL on both products that normally impact the masses.

Published in Dawn, September 16th, 2024