[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]ISLAMABAD: Following the decline in global oil prices, the price of high-speed diesel (HSD) is expected to fall by Rs5.41 per litre beginning May 1, 2023.
The Kharif crop planting season has already begun, and any decrease in the price of diesel, which is widely used in the transportation and agriculture sectors, will benefit farmers who are suffering from high oil prices.
In light of the current political turmoil, the government is likely to pass on the relief to consumers.
It also cannot raise the petroleum levy, which is already set at a maximum of Rs50 per litre in order to boost state revenues.
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The ex-depot price of HSD is currently Rs293 per litre, which is expected to be reduced by Rs5.41 to Rs287.59 in the upcoming fortnightly review.
Petrol, which is used in motorcycles and passenger cars and is an alternative to compressed natural gas (CNG), is expected to be reduced by Rs3.86 to Rs278.14 per litre.
Petrol is currently priced at Rs282.
Similarly, paraffin oil, which is currently priced at Rs186.07 per litre, is expected to be reduced by Rs8.09 to Rs177.98 per litre.
Kerosene oil is used in remote areas, especially in northern parts of the country, for cooking purposes, where liquefied petroleum gas (LPG) is not readily available.
Finally, the price of light diesel oil (LDO), which is currently Rs174.68 per litre, is expected to fall to Rs163.10 per litre, a Rs11.58 decrease.
LDO is used in manufacturing.
JP-1 (local) and JP-8 prices may fall by Rs8.09 per litre. JP-4, on the other hand, is expected to drop by Rs6.98 per litre.
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Jet fuel is used in the aviation industry.
The currency exchange rate is also considered when revising petroleum prices.
Since April 16, the dollar’s value against the rupee has fallen by Rs2.57 to Rs284.09.
The current petroleum levy and general sales tax are also factors in petroleum prices.
Furthermore, prices will be determined by the Platts index from April 16 to 26, with only two days of data remaining.
In addition, the inland goods equalisation margin (IFEM) is used.
Petrol costs Rs2.26 per litre, while HSD costs Rs4.38 per litre.
IFEM is a fee levied on oil marketing companies for transporting fuel to various parts of the country.
If the government decides to postpone Pakistan State Oil’s (PSO) currency exchange rate adjustment, ex-refinery petrol will be Rs15.86 cheaper per litre, falling from Rs216.74 to Rs200.88 per litre.
Similarly, the price of HSD may fall by Rs29.41 per litre, from Rs234.06 to Rs204.65.
It is important to note that petroleum prices are subject to change due to various factors such as global oil prices, currency exchange rates, and government policies.[/vc_column_text][/vc_column][/vc_row]
