Ex-depot prices of petrol and high-speed diesel are likely to decrease by Rs 8.3 paise per liter due to drop in oil prices in the global market.
The report of Business Recorder states that according to an estimate, in the review of the prices of petroleum products by the federal government for May 1 to 15, 2024, the price of petrol will be 4 rupees 88 paise per liter and the price of high speed diesel 7 rupees per liter. A reduction of Rs 37 paise per liter is expected.
The price of kerosene oil is likely to decrease by Rs 8.03 paise and the price of light diesel oil by Rs 5.37 paise per litre.
The Oil and Gas Regulatory Authority (OGRA) will submit its recommendations regarding the prices of petroleum products to the Finance Division on April 30, 2024.
In case of price reduction, the price of petrol will be Rs 289.06 per liter instead of Rs 293.94 and the new price of high speed diesel is expected to be reduced from Rs 290.38 per liter to Rs 283.01 per litre.
It should be noted that Iran had issued a final notice to Pakistan in January to complete its part of the pipeline in February. It must complete it by March 2024 or face a penalty of $18 billion under the penalty clause of the Gas Sales Purchase Agreement (GSPA) for the 781 km long project.
Despite the reduction in import premium and the improvement in the exchange rate, due to the situation in the Middle East, the increase in the price of crude oil in the global market will have an impact on the prices of petrol and diesel.
Informed sources say that the price of petrol and high speed diesel has increased by 4 and 4 and a half dollars per barrel in the global market during two weeks. This increase predates Iran’s attack on Israel. Now the situation has changed.
The import premium on petrol has fallen by 21 percent ($10.70 cents) per barrel over the past fortnight. In the last days of March, the ratio was 13 dollars 50 cents per barrel. Meanwhile, the value of the rupee has increased by 40 paisa once morest the dollar. Now one dollar is 278 rupees 20 paise.
The price of high-speed diesel has also increased in the global market and the import premium paid by Pakistan State Oil has remained unchanged at $6.50 cents per barrel.