ISLAMABAD: The interim government may keep the price of petrol unchanged, and a significant decrease in other petroleum products is estimated with effect from November 16, 2023.

Oil marketing companies estimated an increase of Rs 3 per litre in petrol prices, reaching Rs 286.38 per litre from the current Rs 283.38. However, it is expected that the government may adjust the increase in oil companies and dealer margin and ex-refinery price to keep the price unchanged for the next half.

Other products including high-speed diesel (HSD) is likely to undergo a substantial cut, decreasing by Rs10 per litre to Rs 293.18 from the existing Rs 303.18.

The price of kerosene oil is projected to be reduced to Rs 205.03 per litre from Rs 211.03, reflecting a decrease of Rs 5.03 per litre. The price of light diesel oil (LDO) is also anticipated to slash by Rs 9 per litre, bringing its price down to Rs 180.46 per litre from Rs 189.46.

The determinants of these prices include current government taxes and adjustments based on the US dollar exchange rate. Globally, petrol prices have fallen by around three percent to the lowest point in the last three months due to decreased demand. Brent crude dropped by $ 2.07, settling at $ 79.54 per barrel.

The interim government will review petroleum products’ prices for the second half of November on Wednesday (today).

In the last review, the government imposed a petroleum levy at the maximum limit of Rs 60 per litre on both petrol and HSD. The Inland Freight Equalization Margin (IFEM) stands at Rs 7.71 per litre for petrol and Rs 0.60 per litre for diesel. Dealer margins, including extra margin, are fixed at Rs 8.64 per litre for both petrol and diesel, and oil marketing companies maintain a margin of Rs 7.87 per litre.

Distributor margins, encompassing an extra margin, are established at Rs 8.12 per litre for diesel and Rs 7.87 per litre for petrol starting November 1.

Copyright Business Recorder, 2023