ISLAMABAD: Consumers may get a relief of Rs6.50 per litre on account of cut in price of petrol effective from July 1, 2023.

However, the prices of high-speed diesel (HSD) expected to increase by Rs13.90 per litre. It is widely used in transport and agriculture sectors and any revision in price of diesel also results in inflationary impact on the life to the people due to change in freight of goods.

Due to failure of Pakistan LNG Limited (PLL) to secure LNG contracts, there has been issue of providing LNG to the CNG retail outlets especially in Punjab where indigenous gas has not been available for the last several years.

Petrol price likely to decline

Industry sources indicate that the proposed changes in petrol and diesel prices are based on the current rates of Petroleum Levy and GST.

The Pakistan State Oil (PSO) exchange adjustment for petrol is estimated at Rs1.50 per litre, and for diesel, it stands at Rs1.45 per litre. The petroleum levy is fixed at Rs50 per litre on both petrol and HSD.

If approved, the decrease in petrol price would result in an ex-depot price of Rs255.52 per litre, compared to the current market rate of Rs262 per litre. However, diesel prices could soar to an ex-depot price of Rs266.84 per litre, rising from the current market rate of Rs253 per litre. These potential changes have raised concerns among consumers who heavily rely on diesel for transportation and power generation.

In contrast, kerosene prices are expected to witness a hike of Rs5.41 per litre, reaching an ex-depot price of Rs169.48 per litre. Furthermore, Light Diesel Oil (LDO) might experience an increase of Rs4.35 per litre, bringing the ex-depot price to Rs154.55 per litre. These adjustments could impact households relying on kerosene for cooking and LDO for various industrial processes.

The final price adjustments may differ if the IFEM is amended by the Oil and Gas Regulatory Authority (Ogra). Due to the long Eid holidays, there is a possibility that the government will rollover the prices at the current level.

Copyright Business Recorder, 2023