Staff Report
ISLAMABAD: Fuel prices are expected to witness drop by more than Rs 5 per litre at the start of next month and will remain effective for the first fifteen days of June 2024.
According to sources, the burden of inflation on the general public is expected to lighten with the anticipated reduction in oil prices as Petrol is likely to see a cut of Rs 5.27 per litre, and high-speed diesel (HSD) could witness a decrease of Rs 4.13/litre. Furthermore, the per litre price of Kerosene oil is estimated to be decreased by Rs 2.15 and the price of light diesel oil (LDO) is likely to witness a significant cut of Rs 5.18/litre for the first half of June 2024.
They said these estimates are based on the current tax structure and, if approved, would mean that consumers could be paying Rs 267.83 per litre for petrol, Rs 269.95per litre for HSD, Rs 171.33 per litre for kerosene oil, and Rs 156.09 per litre for LDO.
These proposed changes in petrol, diesel, and kerosene oil prices are calculated based on current government taxes, they added.
It is also learnt from the sources that this reduction in prices for the first half half of June 2024 is calculated with zero $ exchange adjustment. Current Inland Freight Equalization Margin (IFEM) stands at Rs 6.73 on petrol and HSD Rs 3.77. Petrol premium looks $ 9.700/bbl (based on PSO two expected vessels). HSD premium $ 6.50/bbl (no change) and Platts remaining three days.
At present, petrol is available at Rs 273.10/litre, HSD at Rs 274.08/litre, Kerosene oil at Rs 173.48/litre and LDO at Rs 161.17/litre in the open market of the country.
As per sources, these proposed changes are subject to government approval and will depend on various factors, including global oil prices, currency exchange rates, and the financial implications for the energy sector.
Petrol is primarily used as fuel for cars, motorcycles, and other vehicles.
High-Speed Diesel (HSD) is mainly used as fuel for heavy vehicles like trucks, buses, and industrial machinery. It is also used in generators and some agricultural equipment.
Kerosene Oil is used for cooking and lighting in households without access to electricity.
Light Diesel Oil is used in industrial boilers, furnaces, and certain types of engines. It’s commonly utilised in sectors like textiles, cement, and power generation.
It is pertinent to mention that the estimated cut in POL prices would further help decrease inflation in the country which is already on the decline and as a result of this significant cut in oil prices the inflation-hit masses will find relief.
