Petrol costs are expected to decline by more than Rs10

ISLAMABAD: Starting on December 15, major petroleum products, such as gasoline and high-speed diesel (HSD), will be significantly reduced by more than Rs10 per litre. Prepare yourself for a significant relief at the pump.

The recent decline in the global market is the main factor causing this positive development.

According to credible reports, over the last two weeks, there has been a nearly five percent decrease in the global prices of gasoline and HSD. Simultaneously, the rupee appreciated slightly versus the US dollar, which led to a noteworthy decline in domestic prices for consumers.

According to officials with knowledge of the situation, HSD reduced in price by about $4 per barrel on average during the course of the week, going from about $99.50 to $95.50. Concurrently, the cost of gasoline experienced a decrease, falling from $86.5 to $81.7.

The rupee’s increase versus the dollar—it was trading at Rs284 as of December 1 from 285.5—further highlighted the advantageous circumstances. Remarkably, over the same time frame, the benchmark Brent oil fell from $79 per barrel to $73.

Forecasts consequently suggest a possible drop of at least Rs. 12 per litre for HSD and at least Rs. 10 per litre for gasoline. Kerosene and light diesel oil are also anticipated to see decreases, with an estimated drop of Rs. 7 and Rs. 13, respectively.

It is noteworthy that the government has already raised the petroleum levy to the legal maximum of Rs. 60 per litre. According to the IMF, the budget target for petroleum levy collection during FY24 is Rs869 billion; however, by the end of June, it is hoped that the collection may exceed Rs950 billion.

Petroleum prices are about to change, which is a significant development for consumers and has ramifications for the overall state of the economy.