Petrol, diesel prices cut from Nov 1 likely

ISLAMABAD: The POL [petrol, oil, lubricant] prices may witness a decline by Rs1.42 to Rs3.32 per litre from November 1, 2024, for the next fortnight due to decrease in crude oil price in the international market.

The petrol price may go down by Rs3.29 per litre and high speed diesel (HSD) by Rs3.13 per litre, industrial and official sources told The News. “The average price of petrol had dropped in the international market to $76 per barrel from $77.5 per barrel.”

However, the price of petrol may increase by Re0.78 and HSD by Rs0.26 per litre, if the authorities adjust the internal equalisation freight margin (IEFM) of Rs2-3 per litre at least, which the government kept negative for the ongoing fortnight from October 16, 2024, to keep the POL prices at the lower side, though international prices went up in the last fortnight.

In case the authorities adjust the IEFM, even then the price of kerosene oil will go down by Rs1.42 and light deiseal oil (LDO) by Rs3.32 per litre. The government earlier reduced IFEM by Rs3.04 and Rs4.07 per litre for HSD and Mogas, respectively owing to which oil marketing companies and refineries faced losses.

In a letter, written on October 16, 2024, to the Oil and Gas Regulatory Authority (OGRA) chairman, the Oil Companies Advisory Council (OCAC) said the government deviated from its existing pricing formula. To manage the prices at lower side from October 16, 2024, the Customs Duty for HSD was reduced from Rs15.18 to Rs13.26 per litre.