Govt may slash petrol by Rs17.21/litre in upcoming review

KARACHI: Government might slash petrol and high speed diesel (HSD) prices by Rs17.21 and Rs41.78 per litre, respectively if it does not raise petroleum levy or collect general sales tax in the coming fortnight.

According to the Oil Companies Advisory Council (OCAC) forecast for the next fortnightly review of the domestic petroleum rates, ex-depot price of petrol would be Rs231.53 per litre for the second fortnight of July compared to Rs248.74 per litre in the current fortnight, showing a decline of Rs17.21.

Similarly, ex-depot price of diesel has been projected at Rs234.76 per litre for the next fortnight of July against Rs276.54 per litre for the current fortnight, reflecting a decrease of Rs41.78 per litre.

Price of kerosene, an essential illumination fuel, has been projected at Rs199.88 for the next fortnight compared to Rs230.26 per litre in the current fortnight.

The price of light diesel oil (LDO) has been worked out at Rs193.77 per litre compared to Rs226.15 per litre in the current fortnight, showing a decrease of Rs32.38 per litre.

OCAC has projected the prices of various products on the basis of current government taxes on petroleum products in the country.

Government is collecting Rs10 per litre petroleum levy on petroleum and Rs5 per litre on HSD, kerosene and LDO since July 1, 2022 under the condition of International Monetary Fund (IMF) to revive its stalled programme with Pakistan. Government is collecting zero GST on petroleum products since the start of the new fiscal. Domestic consumers have been bearing the brunt of high prices of petroleum products after the government jacked up rates consecutively four times in 35 days due to massive increase in international oil prices. Prices of petroleum products have reached an all-time high level in this duration.

Since the coalition government took power, diesel price has surged by 82 percent, with petrol price went up 56 percent. Before former prime minister Imran Khan lost the vote of no confidence, petrol was Rs150.63 and diesel was Rs144.9.

The start of July saw reduction in global oil prices, which also ignited hopes that the reduction would be passed on to the domestic consumers.

Prime Minister Shahbaz Sharif announced a day earlier that reduction in oil prices in the global market would be passed on to domestic consumers. He sought the summary from Petroleum and Finance Ministries to work out the relief to be passed on to the masses.