ISLAMABAD:
After global oil prices fell, HSD prices dropped by Rs5.41 per litre on May 1, 2023.
Any decrease in diesel prices, which are widely used in transport and agriculture, will help farmers struggling with high oil prices during Kharif crop planting season.
Due to political turmoil, the government may give consumers relief.
It cannot raise the maximum Rs50 per litre petroleum levy, which boosts state revenues.
The ex-depot price of HSD is Rs293 per litre, but the next fortnightly review is expected to lower it by Rs5.41 to Rs287.59.
Petrol, an alternative to CNG used in motorbikes and passenger cars, is expected to drop by Rs3.86 to Rs278.14 per litre.
Petrol costs Rs282.
Kerosene oil, currently Rs186.07 per litre, is expected to drop by Rs8.09 to Rs177.98.
Kerosene oil is used for cooking in remote areas, especially in the north, where LPG is unavailable.
Finally, light diesel oil (LDO), which costs Rs174.68 per litre, may drop to Rs163.10 per litre, a Rs11.58 drop.
Industries use LDO.
JP-1 (local) and JP-8 may drop Rs8.09 per litre.
JP-4 may drop Rs6.98 per litre.
Aviation uses jet fuel.
Currency exchange rates affect petroleum price revisions.
Since April 16, the dollar has dropped Rs2.57 to Rs284.09.
The petroleum levy and sales tax affect petroleum prices.
From April 16 to 26, Platts index will determine prices.
IFEM is also used.
HSD costs Rs4.38, while petrol costs Rs2.26.
Oil marketing companies pay IFEM to transport fuel nationwide.
If the government delays Pakistan State Oil’s (PSO) currency exchange rate adjustment, ex-refinery petrol will drop by Rs15.86 per litre, from Rs216.74 to Rs200.88.
HSD may drop by Rs29.41 per litre, from Rs234.06 to Rs204.65.
Global oil prices, currency exchange rates, and government policies affect petroleum prices.
