August begins with a drop in fuel prices
ISLAMABAD: After two consecutive hikes in fuel rates, the government reduced the price of petrol by about Rs6.17 per litre and that of high-speed diesel (HSD) by Rs10.86 on Wednesday for the fortnight ending Aug 15, mainly because of lower global oil prices and import premiums.
Separately, in a belated decision, the Oil and Gas Regulatory Authority (Ogra) revised the sale price of regasified liquefied natural gas (RLNG) for July by 8.45 per cent to $13.15 per million British thermal units (mmBtu) owing to lower international oil prices.
Conversely, Ogra also notified an increase of Rs27 (about 0.97pc) per domestic cylinder in the consumer-end sale price of liquefied petroleum gas (LPG) for August. The domestic cylinder, weighing 11.8kg, will now cost Rs2,796.
The regulator said the LPG price was increased due to a slightly higher Saudi Aramco contract price and a minor improvement in the rupee’s value against the dollar. “The per-kg increase in LPG consumer price is Rs2.27,” a statement said.
In a late-night announcement, the Ministry of Finance said Ogra had worked out the consumer prices based on the price variations in the international market.
The ex-depot petrol price has therefore been reduced to Rs269.43 per litre for the next 15 days compared to Rs275.60, down 2.2pc or Rs6.17 per litre. In the retail market, petrol would, however, be available for over Rs270 per litre.
The ex-depot price of high-speed diesel was slashed by Rs10.86 per litre (3.8pc) to Rs272.77 for the next fortnight compared to Rs283.63 earlier.
Officials said the prices of petrol and high-speed diesel had decreased in the international market by about $2.5 and $3.8 per barrel, respectively, in the last fortnight. The average price of petrol dropped in the international market to $87 from $89.50 per barrel. The HSD’s price also declined to $93.1 per barrel from about $96.93.
During the fortnight, the import premium on both petrol and high-speed diesel also declined. It dropped to $8.75 from $9 per barrel on petrol and to $5 from $6.50 per barrel on high-speed diesel. On the other hand, the exchange rate movement remained range-bound.
Petrol and HSD prices had increased by Rs7.45 and Rs9.56 per litre on June 30. This was followed by Rs9.99 and Rs6.18 hikes in their prices on July 16. Therefore, petrol and diesel rates cumulatively jumped by Rs17.44 and Rs15.74 per litre in July.
Between May 1 and June 15, the prices of both petrol and high-speed diesel dropped about Rs35 and Rs22 per litre, respectively.
At present, the government is charging about Rs78 per litre tax on both fuels. Although GST is zero on all the petroleum products, the government charges Rs60 per litre PDL on both products.
Published in Dawn, August 1st, 2024