Govt Likely to decrease Petrol Price Further
High-speed diesel (HSD), petroleum, and light diesel prices are expected to increase by Rs. 5 to Rs. 12 per litre on October 15, while the price of petrol will probably drop.
This can only happen if the government maintains current tax rates. Based on these rates, the ex-depot price of gasoline will probably drop from Rs 10.75 per litre to around Rs 214.
On the other hand, the price of HSD will go up from Rs 11.50 a liter to Rs 247. Similarly, kerosene and Light Diesel (LDO) prices will also rise by Rs 4.50 and Rs. 7.50 per liter at about Rs 196 and Rs 194 per liter respectively.
The report notes that international reference prices for crude have come down in recent weeks. However, because of refining capacity constraints, margins and premiums on HSD increased, which had a higher impact on the costs of DUS imports.
In addition, crude oil prices started to rise again this week due to production reductions in the main oil-exporting countries. These reductions will be reflected in price increases over the next two weeks, starting next month.
Based on Finance Minister Ishaq Dar’s level of confidence in Washington, the government can maintain gasoline and DUS rates through a pro-rated adjustment of the Petroleum Development Levy (PDL). The PDL on fuel would then approach the maximum level agreed upon with the IMF.
This is a promising prospect for daily commuters as well as other fuel-reliant industries. Although this news is to be taken with a pinch of salt as the interim government has a story of not seeing its enthusiastic demands come true.