Petrol Price
ISLAMABAD: The government is poised to implement a significant reduction in fuel prices starting August 1, 2024, with petrol expected to decrease by Rs5.50 per litre and diesel by Rs11.06 per litre for the upcoming fortnight.
Additionally, kerosene oil prices are projected to drop by Rs5.84 per litre, and Light Diesel Oil (LDO) is set to fall by Rs5.07 per litre.
This anticipated price cut is attributed to a reduction in the premium by Kuwait Petroleum Company (KPC), which has decreased by $1.50 per barrel for diesel, alongside reduced demand for petroleum products from major global economies, including the United States and China.
Following the adjustment, the new retail price for petrol is expected to be Rs270.10 per litre, down from the current rate of Rs275.60.
High-speed diesel (HSD) is projected to be priced at Rs272.57 per litre, a reduction from its existing rate of Rs283.63 per litre.
Kerosene oil is likely to be priced at Rs177.87 per litre, down from Rs183.71, while light diesel oil (LDO) is expected to be available at Rs161.18 per litre, compared to the current rate of Rs166.25 per litre.
However, the extent of this relief could be impacted if the government decides to increase the petroleum levy by Rs5 per litre on both petrol and diesel.
In such a scenario, the reduction in petrol prices could be limited to Rs0.50 per litre, and diesel prices might only decrease by Rs6.06 per litre.
In contrast, over the past two fortnights, from July 1 to July 31, there was a notable hike in fuel prices, with petrol increasing by Rs17.44 per litre and diesel by Rs15.74 per litre.
Currently, the internal freight margin on petrol is Rs7.79 per litre, while for HSD it stands at Rs4.51 per litre. The premium on petrol is $8.48 per barrel, and for HSD, it is $5 per barrel.
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