ISLAMABAD: Petrol and diesel prices in Pakistan are likely to decrease in the upcoming fortnightly review after a decline in international oil prices and changes in ex-refinery rates, according to market sources.
The expected reduction could provide relief to consumers and businesses that rely on fuel for transportation and logistics. However, the final decision on petroleum prices will be made by the federal government after reviewing revenue requirements and broader economic considerations.
According to market data, the ex-refinery price of petrol has dropped by Rs8.54 per litre, falling from Rs277.06 to Rs268.52 per litre. At the same time, customs duty on petrol increased by Rs2.86 per litre, taking the total duty from Rs22.75 to Rs25.61 per litre.
Despite the increase in customs duty, international petrol prices have moved lower. Sources said the per-barrel price of petrol declined from $144.57 to $138.08. However, the premium on petrol reportedly increased by $2.90 per barrel, rising from $17.44 to $20.34 per barrel.
Diesel records sharper decline
Diesel prices showed a more significant decrease in the latest calculations. The ex-refinery price of diesel fell by Rs30.91 per litre, dropping from Rs322.28 to Rs291.37 per litre.
In the international market, diesel prices declined by $17.61 per barrel, bringing the rate down from $169.1 to $151.40 per barrel, according to sources.
Government to make final decision
Officials said the government will determine the extent of any reduction in fuel prices after reviewing fiscal targets and revenue considerations. The prime minister is expected to make the final decision in consultation with the economic team.
Market analysts noted that consumers could receive substantial relief if the government chooses not to increase the petroleum levy or adjust other pricing components during the upcoming review.
Pakistan revises petroleum product prices every two weeks based on movements in international oil markets, exchange rate trends, taxes, duties, and other pricing adjustments.
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