With effect from May 1, 2023, the price of high-speed diesel (HSD) is anticipated to decrease by Rs. 5.41 per liter due to a decline in the price of crude oil globally.
Additionally, it cannot raise the petroleum levy, which is already set at a maximum of 50 rupees per liter and is intended to boost state revenues.
The Kharif crop planting season is well underway, so farmers who are suffering from high oil prices will benefit from any drop in the cost of diesel, which is heavily used in the transportation and agricultural sectors.
With the current political uncertainty as a backdrop, the government is likely to distribute the relief to consumers.
The price of HSD per liter, which is currently Rs. 293 (ex-depot), is anticipated to decrease by Rs. 5.41 to Rs. 287.59 under the upcoming fortnightly review.
Petrol Prices Likely to go Down from May 1
On the other side, the cost of petrol, an alternative to compressed natural gas (CNG) that is used in passenger cars, is anticipated to decrease by Rs. 3.86 to Rs. 278.14 per liter. The price of petrol is currently Rs. 282 per liter.
Similar to this, it is anticipated that the price of paraffin oil, which is presently priced at Rs. 186.07 per liter, will drop by Rs. 8.09 to Rs. 177.98 per liter.
In distant sections of the country, particularly in the north, where liquefied petroleum gas (LPG) is not easily accessible, kerosene oil is utilized for cooking.
Last but not least, the cost of light diesel oil (LDO), which is now selling for Rs. 174.68 per liter, is forecast to decline by Rs. 11.58 to Rs. 163.10 per liter. LDO is used in various sectors.
JP-1 (local) and JP-8 prices could both decrease by Rs. 8.09 per litre. JP-4, on the other hand, is probably going to cost 6.98 less rupees a litre. In the aviation sector, jet fuel is used.
The currency exchange rate is taken into account when updating petroleum prices. The dollar’s value versus the rupee has decreased by 2.57 rupees since April 16 to reach 284.09.
Additionally, the current petroleum levy and general sales tax are used to determine petroleum prices. With only two days of data left, prices will also be based on the Platts index from April 16 to April 26.
Additionally used is the inland goods equalization margin (IFEM). For fuel, the price per liter is Rs. 2.26, but for HSD, it is Rs. 4.38.
Oil marketing firms are compensated with IFEM for delivering fuel to various locations across the nation.
The price of ex-refinery petrol is anticipated to decrease by Rs. 15.86 per liter, from Rs. 216.74 to Rs. 200.88 per liter, if the government decides to postpone Pakistan State Oil’s (PSO) currency exchange rate adjustment.
The price of HSD may also decrease by Rs. 29.41 per liter, from Rs. 234.06 to Rs. 204.65.
It is crucial to remember that petroleum costs might change as a result of a number of variables, including global oil prices, currency exchange rates, and governmental policies.
To read our blog on “Petrol prices likely to go up by Rs. 15/liter from April 16,” click here.
