ISLAMABAD: The fortnightly price of petroleum products (POL) is likely to climb down by up to Rs14.71 per litre based on the existing rate of taxes, with effect from October 1.

The energy sector experts have worked out that the price of petrol may reduce by Rs4.94 per litre and High-Speed Diesel (HSD) by Rs14.71 per litre in line with a significant drop in the price of refined and crude oil, globally.

In case the government decides to reduce the prices, the ex-depot price of petrol will come down from Rs237.43 to Rs232.49 per litre.

The price of HSD will come down from Rs247.43 to Rs232.72 per litre.

The price of kerosene oil (SKO) is also expected to come down by Rs12.03 per litre from Rs202.02 to Rs189.99 per litre.

The price of light diesel oil (LDO) is also expected to come down by Rs8.93 per litre from Rs197.28 to Rs188.35 per litre.

The sources further said that cut in the POL prices was certain if the petroleum development levies (PL) and the general sales tax (GST) are not increased. The government had committed to increase the PL rate by Rs50 per litre till April 2023 as per the agreement with the IMF.

On September 21, the PL on HSD is increased by eight paisa from Rs7.50 to Rs7.58 per litre and same eight paisa reduced on petrol from Rs37.50 to Rs37.42 per litre till September 30.

The prices of crude oil in the international market are at the lowest in the last eight months. Brent Crude Oil is available at $86.15 per barrel after a drop by $4.31 while the price of WTI crude oil is $78.74 per barrel after a reduction by $4.75.

Pakistan is importing 70 percent of fuel in refined form due to the limited capacity of local refineries and 30 percent import in crude oil.

Copyright Business Recorder, 2022