ISLAMABAD – The Pakistani government is anticipated to lower the prices of petroleum products for the latter half of the upcoming month. This move is part of a broader plan to provide some relief to the citizens who are currently grappling with record-high food and fuel costs.
The Sharif-led administration is scheduled to reassess the prices of petroleum products today, setting the rates for the next two weeks. Insiders privy to the matter suggest that an improvement in the local currency could enable the government to reduce the ex-depot price of petrol. However, this potential relief could be hindered by the International Monetary Fund’s (IMF) condition to increase the petroleum levy.
In contrast, the petroleum levy on High-Speed Diesel (HSD) is projected to rise over the next fortnight. Despite recent global increases in the prices of petroleum oil and lubricants (PoL), the Pakistani Rupee’s resilience against the US dollar, bolstered by the disbursement of funds from the IMF and financial aid from an ally, may result in a slight decrease in petrol prices for the public.
As of July 15, the ex-depot price of petrol is expected to drop by approximately Rs10 from its current rate. Conversely, the ex-depot price of High-Speed Diesel is predicted to rise by more than Rs3.50. The prices of light-speed diesel and kerosene are also trending upward.
Currently, Pakistan imposes an Rs50 per litre petroleum levy on High-Speed Diesel. The IMF has proposed an increase to Rs60 per litre. However, instead of implementing the full Rs10 increase, the government may opt to raise the levy by only Rs5. In the previous fortnight’s review, the government decided to maintain the existing petrol prices until July 15.
