Staff Report
ISLAMABAD:
The prices of all petroleum products are likely to decrease by up to Rs 8.03 per litre for fifteen days with the start of the next month of May, 2024.
According to the sources, the per litre prices of petroleum products may reduce with the start of May 2024. They said that petrol is expected to see a cut of Rs 4.88/litre, high speed diesel (HSD) could witness a decrease by Rs 7.37per per liter, while the price of Light Diesel Oil (LDO) may be reduced by Rs 5.37/litre and kerosene oil may witness a decrease of Rs 8.03 per litre.
These estimates are based on the current tax structure and, if approved, would mean that consumers could be paying Rs 289.06 per litre for petrol, Rs 283.01per litre for HSD, Rs 185.05 per litre for kerosene oil, and Rs 168.97 per litre for LDO, all starting with the start of May 2024, said sources.
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 likely reduction in oil prices for the first half of May 2024 are calculated without exchange adjustment, while current Inland Freight Equalization Margin (IFEM) on petrol/PMG is Rs 6.75 and HSD Rs 3.71.
At present, petrol is available at Rs 293.94/litre, HSD at Rs 290.38/litre, Kerosene oil at Rs 193.08/litre and LDO at Rs 174.34/litre.
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.
The Minister of Finance, Revenue and Economic Affairs, Muhammad Aurangzeb would announce the new oil prices on Tuesday after getting the consent of Prime Minister Shehbaz Sharif.
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 utilized in sectors like textiles, cement, and power generation.
