ISLAMABAD: A significant reduction in petroleum products ex-depot prices upto Rs35 per litre is projected for the second fortnight of October, however, the final decision will be taken by the interim government by adjusting various taxes on the products.

According to oil companies’ estimates, the petrol price may come down by Rs35 per litre from Rs323.38 to Rs288.38 per litre. The price of high-speed diesel (HSD) may also reduce by Rs16 per litre from Rs318.18 to Rs302.18 per litre with effect from October 16, 2023.

The price of kerosene oil which consumption increased manifold during winter in far-flung areas also expected to be slashed by Rs21 per litre from Rs237 to Rs215 per litre and light diesel oil (LDO) by Rs18 per litre from Rs212 to Rs194 per litre.

The projected price is based on current government taxes.

Currently, the government is charging Rs50 per litre petroleum levy (PL) on HSD and still room is available for Rs10 per litre but PL on petrol has already been at the maximum limit of Rs60 per litre.

According to sources, the price of petroleum products on Platts reduced drastically and Pakistan rupee strengthened against the US dollar. The average gain of Pakistan rupee against the US dollar in the last 13 days is Rs7.50.

Petrol price on FOB basis has calculated to reduce from $99.28 per bbl to $87.54 per bbl or $11.74 bbl reduction.

HSD FOB reduced from $122.34 per bbl to $114.80 or $7.55 per bbl reduction FOB is a common pricing basis for a commodity that is being shipped.

Copyright Business Recorder, 2023