Diesel price likely to tumble by Rs11.75 from 16th

ISLAMABAD: A reduction in the POL prices is on the cards from August 16 for the next fortnight due to a decrease in the oil price in the international market.

The authorities concerned have worked out a cut of Rs11.75 per liter in the price of high speed diesel. However, the petrol price is likely to appreciate by Rs1.32 per liter.

The price of kerosene is also likely to tumble by Rs6.25 per liter and Light Diesel Oil (LDO) by Rs7.11 per liter.

WTI crude oil futures dropped to $62.7 per barrel, the lowest in over two months, after the International Energy Agency forecast a growing oil surplus this year and next.

Inventories are expected to rise at a record pace and hit a 46-month high by June 2026, reinforcing the US government’s similar outlook.

The US oil production is projected to peak this year before declining next year, boosted by greater efficiency at the existing wells.

Meanwhile, a US industry report showed stockpiles rose slightly last week, with official data due later in the day. The traders are also focused on the upcoming US–Russia summit in Alaska on Friday, aimed at negotiating an end to the Ukraine war.

Ukrainian President Zelensky has rejected ceding Donbas to Russia, a condition Putin has demanded, and sought Kyiv’s inclusion in talks, which could influence potential easing of US sanctions on Russian oil.

The new price of HSD is likely to settle down at Rs274.08 per liter from the existing price of Rs282.83 per liter. However, the price of Mogas (petrol) is likely to increase to Rs265.93 per liter from the existing Rs264 per liter. The new price of LDO may settle at Rs163 from the existing price of Rs170.36 per liter.

The government is already charging Petroleum Levy and Carbon Levy of Rs80.52 on one liter of petrol and Rs79.51 on HSD in addition to getting IFEM (inland freight Equalization margin) of Rs8.70 on one liter of petrol and Rs4.06 on diesel.