ISLAMABAD: The caretaker government on Friday announced reduction in ex-depot prices of major petroleum products, owing to a significant drop in oil prices globally and strengthening of the rupee against UD dollar, effective December 16-31, 2023.
In a fortnightly review, the prices of petroleum products — petrol and high-speed diesel (HSD) reduced by Rs14 per litre and Rs 13.50 per litre (4.6 percent), respectively with effect from December 16.
The rate of petroleum levy (PL) has been kept unchanged at maximum limit of Rs 60 per litre on both products, whereas, no GST levied on these products. The interim government made adjustment in inland freight equalization margin (IFEM) and dealers’ margins.
After the reduction, the petrol is available at Rs 267.34 per litre, while HSD at Rs 276.21 per liter.
The price of kerosene oil, widely used in defence sector and cooking purposes in far flung areas, has also been reduced by Rs 10.14 per litre to Rs 191.20 per litre. Light Diesel Oil (LDO) price has been reduced by Rs 11.29 per litre to Rs 164.64 per liter.
Globally, prices of both petrol and HSD have declined over the past fortnight by 5.5 percent while the Pak rupee also gained marginally against the US dollar.
The HSD became cheaper by about $4 per barrel on average from about $99.50 to $95.50, while the price of petrol climbed down to $81.7 from $86.5 in last fortnight (December 1-15). Pak rupee also gained against the US dollar to Rs284 from 285.5 on the first of Dec 1.
In December Attock Refinery Limited (ARL) had shut down two of its crude distillation plants due to reduced off-take of finished products by oil marketing companies (OMCs), ARL, which refines indigenous crude oil, in its letter written on December 07, 2023, stated that the company was facing serious challenges in disposing of its petrol and diesel production due to poor upliftment by OMCs, who were preferably selling imported products to earn more profits from IFEM charges.
Copyright Business Recorder, 2023
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