ISLAMABAD: An estimated up to Rs20 per litre reduction in the prices of major petroleum products (petrol and high-speed diesel) is expected in the first half of September 2022, sources in the Petroleum Division said.

Sources said that a reduction of around Rs20 per litre in the price of petrol and Rs3 per litre on HSD is expected for the first 15 days of September.

The federal government may not reduce recommended prices of the Oil and Gas Regulatory Authority (OGRA) with effect from September 1 as it has already announced to impose the additional petroleum levy (PL) at the rate of Rs10 on petrol and 10.5 percent general sales tax (GST) on petroleum products depriving the consumers of the benefit of the international price cut.

The regulator has started working on their recommended on fortnightly prices of petroleum product with effect from September 1, 2022.

Petrol price raised by Rs6.72/liter

The average exchange rate has come down from Rs227 in the first half of August to Rs217 in the last 15days purchase of Pakistan State Oil (PSO). Similarly, the premium which was paid at the rate of $17 and $8.5 per barrel on petrol and HSD, respectively, in the first half of August has also come down.

The government has already announced that the reduction in the price of refinery products will come after 15 days.

Pakistan had assured the International Monetary Fund (IMF) to gradually increase the levy on petroleum products up to Rs50 per litre and GST to 17 percent to generate revenue.

The consumers are paying PL on petrol at Rs20 per litre and Rs10 per litre on HSD, kerosene oil and light diesel oil (LDO) and no GST on petroleum products.

Copyright Business Recorder, 2022