Petrol and Diesel Prices to Decrease in November?

Pakistan may see a reduction in petrol and diesel prices in November due to declining global crude oil prices, according to government officials. The expected decrease, ranging from Rs2-3 per liter for petrol and Rs2.30 for diesel, aims to bring relief to the inflation-hit public.

As the average per-barrel cost of petrol has dropped from $77.5 to $76 and high-speed diesel from $86.5 to $84, the government may lower prices at the ex-depot level by Rs2 to Rs3 per liter for petrol and Rs2.30 for diesel. The current ex-depot price of petrol is Rs247.03 per liter, and diesel is at Rs251.29 per liter, making the proposed adjustments a welcome respite for consumers. The reduction would benefit both the general public and the transport sector, which relies heavily on petrol. High-speed diesel (HSD) is used in heavy vehicles and agricultural engines, making it a significant factor in controlling inflation.

Additionally, the prices of high-speed diesel in the international market have declined by around $2.5 per barrel in the last fortnight. The ex-depot price of high-speed diesel has been reduced by Rs199.36 per 19.5 kg cylinder. The tax on PDL and custom duty on both products is Rs60 per liter and Rs16 per liter, respectively. The distribution and sale margins going to oil companies and their dealers amount to around Rs17 per liter. This has paved the way for the price adjustment.

While the OGRA has not announced any new LPG prices yet, market expectations signal a price reduction due to a decline in global LPG prices. Meanwhile, the Oil and Gas Regulatory Authority (OGRA) will announce the new prices on October 31, which will then come into effect from November 1. With a reduction in global crude oil prices, fuel consumers in Pakistan can look forward to some relief in the coming months.