Petrol Prices Expected to Drop From May 1

Starting May 1, petrol prices, along with High-Speed Diesel (HSD), are expected to see a significant reduction. This welcomed change is attributed to the decline in international oil prices and premium rates.

According to reports, the federal government is gearing up to slash petrol prices by Rs. 4.88 per liter, while HSD may see a whopping decrease of Rs. 7.37 per liter. Additionally, kerosene oil and light diesel oil (LDO) are also anticipated to become more affordable, with expected price reductions of Rs. 8.03 and Rs. 5.37 per liter, respectively.

The latest figures from the Oil and Gas Regulatory Authority (OGRA) suggest that the premium rate on petrol has dipped to $9.60 per barrel, while HSD remains steady at $6.50 per barrel.

OGRA is set to present its recommendations to the Finance Division on April 30 for consideration. If approved, the revised prices will bring relief to consumers grappling with the burden of high fuel costs.

Under the expected adjustments, the price of petrol is poised to decrease to Rs. 289.06 per liter, down from the current price of Rs. 293.94, and HSD may be priced at Rs. 283.01 per liter, a significant drop from Rs. 290.38. Similarly, kerosene oil and LDO are forecasted to become more budget-friendly.

This impending reduction in fuel prices contrasts with the previous fortnightly review where prices surged. The forthcoming decrease is a positive development, promising relief to consumers and potentially easing the strain on household budgets.

Furthermore, the International Monetary Fund’s (IMF) recommendation to reintroduce an 18% general sales tax (GST) on petrol as a condition for the release of the final tranche of its bailout package constantly alarms the country.

Also, there are indications that the government plans to increase the petroleum levy from Rs. 60 to Rs. 100. Over the past few years, the Petroleum Development Levy has undergone several adjustments, notably increasing during the fiscal year 2023.

What do you think about the upcoming development regarding petrol prices in Pakistan? Share your thoughts with us in the comments below.

Afsheen Gohar

Afsheen Gohar is a seasoned writer with a wealth of experience in crafting authentic and well-researched articles. Her dedication to delivering high-quality content is evident in her work, where she combines a passion for storytelling with a commitment to accuracy and depth. Afsheen’s writing reflects her ability to engage readers with compelling narratives while providing valuable insights on a diverse range of topics.