Petroleum products prices likely to drop for fourth consecutive fortnight

The prices of petroleum products are likely to decline for the fourth consecutive fortnight from September 15, said the sources on Saturday.

According to sources, the prices of petrol and High-Speed Diesel (HSD) are expected to be cut by Rs10-11 per litre, as the international market witnessed a decline of $5 per barrel in the last fortnight.

While getting benefits from the lower prices, the government could add a petroleum levy of Rs5 per litre to enhance the FBR’s tax revenue to cover the shortfall in the first two months of the current fiscal year.

Despite imposing the levy, the consumers could avail of the discount of Rs5-6 per litre.

Officials said that petroleum prices in the international market dropped from $81 per barrel to less than $76 per barrel, while HSD was down about $83 per barrel from $88.5 per barrel over the last fortnight.

During the current fortnight, the import premium on petrol and HSD remained stable at $8.5 and $5 per barrel, respectively. Meanwhile, the exchange rate remained range-bound.

Currently, the ex-depot petroleum price stands at Rs259.1 per litre, and HSD is being sold at Rs262.75 litre. 

In the last fortnight, the government reduced Rs1.86 and Rs3.32 per litre on petrol and diesel, respectively.

In the previous three fortnights, Rs16.50 per litre on petrol and Rs19.88 per litre on diesel were dropped, cumulatively.