Anticipated Drop in Petrol and Diesel Prices from November 1 in Pakistan

Starting November 1, petrol and high-speed diesel (HSD) prices in Pakistan are expected to decrease by Rs 2 to Rs 3 per litre. This decline is primarily due to a recent drop in global oil prices. Over the past two weeks, the average global price of petrol has decreased by about $1.5 per barrel, while HSD prices have fallen by $2.5 per barrel. As a result, the average price of petrol has now stabilized at approximately $76 per barrel, down from $77.5, and HSD prices have decreased from $86.5 to around $84 per barrel.

Price Predictions

Based on the latest exchange rate and existing tax structures in Pakistan, analysts anticipate a decrease in petrol prices by Rs 3 per litre and a drop in HSD prices by Rs 2.30 per litre. Currently, the ex-depot prices are set at Rs 243.03 for petrol and Rs 251.29 for HSD.

Recent Price Adjustments

It’s worth noting that on October 15, the government raised diesel prices by Rs 5 per litre while keeping petrol prices stable at Rs 247.03 per litre. This adjustment came after three months of continuous price reductions attributed to softening international prices.

Tax Implications

The government currently imposes significant taxes on both petrol and HSD, totaling around Rs 76 per litre. This includes a petroleum development levy of Rs 60 and Rs 16 in customs duty. Additionally, distribution and sale margins contribute approximately Rs 17 per litre, benefiting oil companies and dealers.

Market Conditions

Despite the anticipated price drops, import premiums for both petrol and HSD have remained stable over the last two weeks, standing at $8.7 per barrel for petrol and $5 for HSD. The exchange rate has also shown minimal fluctuations during this period.

As the new prices come into effect, consumers can look forward to a slight relief in their fuel expenses, thanks to favorable trends in the global oil market.

Afsheen Gohar

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