For the second fortnight in a straight, the administration of Caretaker Prime Minister Anwaarul Haq Kakar has decreased petrol and high-speed diesel (HSD) prices for the next 16 days, ending Oct 31, due to a drop in the international market and an increase in the value of the rupee.
Decrease in Petrol and HSD Prices
The price of petrol was reduced by Rs. 40 per litre, and the price of HSD was reduced by Rs. 15 per litre. As a result, the ex-depot price of gasoline has dropped to approximately Rs. 284 per litre.
The government, on the other hand, increased the petroleum duty on HSD by Rs. 5, hitting a historic high of Rs. 55 per litre, barely below the Rs. 60 maximum allowable limit under the legislation.
— Ministry of Finance (@FinMinistryPak) October 15, 2023
Agreement With IMF
According to the budget aim and obligations agreed with the International Monetary Fund (IMF), the government must collect around Rs. 869 billion in petroleum levy on petroleum products during the current fiscal year.
Following approval from the caretaker prime minister, the Ministry of Finance announced the price cut late at night.
“Owing to the decreasing trend of petroleum price in the international market and due to appreciation of the Pak rupee against the US dollar, the government has decided to revise the consumer prices of petroleum products,” it said.
The decision set the ex-depot price of petrol at Rs. 283.38 a litre for the following two weeks, a Rs. 40 per litre or 12.4 percent decrease.
Gasoline is widely utilized in private transportation, small vehicles, rickshaws, and two-wheelers, putting a strain on the budgets of the middle and lower classes.
Ex-Depot Price of HSD
Similarly, the ex-depot price of HSD was reduced by Rs. 15 per litre or 4.7 percent to Rs. 303.18 per litre from Rs. 318.18 per litre. However, the retail price at the pump will almost certainly be higher than Rs. 304 per litre.
HSD is a principal fuel for heavy vehicles, railways, and a variety of agricultural engines such as trucks, buses, tractors, tube wells, and threshers.
Its price has a significant inflationary impact, especially on the pricing of vegetables and other food goods.
Ex-Depot Price of Kerosene Oil
The ex-depot price of kerosene oil was reduced by Rs. 22 per litre to Rs. 215.28 per litre from Rs. 237.28 per litre.
The ex-depot price of light diesel oil (LDO) was reduced to Rs. 193.45 per litre from Rs. 212.45.
Kerosene is often used by unscrupulous individuals to combine with fuel and, to a lesser extent, for illumination in rural locations, whereas LDO is utilized by wheat mills and a couple of power plants.
Between August 15 and September 15, the retail price of petrol and high-speed diesel increased by Rs. 58.43 and Rs. 55.83 per litre, respectively, to a historic Rs. 331-333 per litre till September 30.
To read our blog on “Petrol sales went down to lowest in Sept 2023 since Covid-19,” click here.