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Prices for petroleum products could decline.

The cost of gasoline and HSD is anticipated to drop by Rs7.50 and Rs12.37 per litre, respectively.

ISLAMABAD: According to oil price predictions from energy experts, the price of gasoline is projected to decrease by about Rs7.50 per litre, while the price of High-Speed Diesel (HSD) may decrease by about Rs12.37 per litre for the second half of December 2022

There won’t be a decrease in the price of gasoline and high-speed diesel in the upcoming two weeks if the government raises the Petroleum Levy (PL) and corrects the backlog of exchange loss on a Free on Board (FOB) basis.

According to sources, the cost of gasoline is predicted to decrease by 7.50 rupees, from 224.80 to 217.30 rupees per litre, while the cost of HSD is predicted to decrease by 12.37 rupees, from 235.30 to 222.93 rupees per litre.

The government is poised to raise the tax on HSD, Superior Kerosene Oil (SKO), and Light Diesel Oil, according to sources in the Petroleum Division (LDO). In the second part of December, it is also possible that the exchange loss arrears in fuel prices would be adjusted.

There are fewer prospects of the price of gasoline and HSD decreasing if the government raises the PL and corrects the exchange loss arrears. When petroleum goods reach the maximum level for PL, which is Rs50 per litre on each petroleum product, the government has promised the International Monetary Fund (IMF) that it will apply general sale tax (GST).

Currently, the government is charging a PL of Rs50 per litre on petrol, Rs25 per litre on HSD, Rs7.01 per litre on SKO and Rs15.39 per litre on LDO. The government, however, has promised the international lender that it will increase the PL on HSD to Rs50 by April 2023