Govt Likely to Cut Petrol Price by Rs5.50 per Litre from Aug 1

Starting August 1, 2024, the Pakistani government is planning to reduce the prices of petrol, diesel, kerosene oil, and high speed diesel (HSD) in a bid to provide relief to consumers. Sources from government and industrial sectors anticipate that the price of petrol will decrease by Rs5.50 per litre, bringing the new price to Rs270.10 per litre. Similarly, diesel prices are likely to see a significant drop of Rs11.06 per litre.

The government expects kerosene oil, widely used across the country, to become more affordable with a projected reduction of Rs5.84 per litre. Meanwhile, the price of High Speed Diesel (HSD) could decrease by Rs11.06 per litre, making it more accessible for various industries reliant on diesel fuel.

Global Factors Lower Petrol Prices

This decision comes amidst favorable international developments, including a reduction in premium rates by Kuwait Petroleum Company (KPC) and lower global demand for petroleum products from major economies like the United States and China. Consequently, these factors have contributed to a downward pressure on international oil prices, thereby enabling the Pakistani government to pass on these savings to the local consumers.

The government might scale back the relief if it increases the petroleum levy by Rs5 per litre on petrol and diesel. This could limit the reduction in petrol prices to Rs0.50 per litre and decrease diesel prices by Rs6.06 per litre.

For the past two fortnights leading up to July 31, 2024, consumers had experienced significant increases in fuel prices, with petrol rising by Rs17.44 per litre and diesel by Rs15.74 per litre. Morreover, tohe upcoming reduction aims to provide some respite to consumers who have faced escalating fuel costs in recent weeks.

As the government prepares to implement these changes, consumers and businesses eagerly await the official announcement. This is expected to stabilize transportation costs and reduce the overall cost of living.