The price of high-speed diesel (HSD) is expected to go down by Rs5.41 per litre effective from May 1, 2023 following the weakening of global oil prices. Kharif crop planting season is already under way and any decrease in the price of diesel, which is widely used in transport and agriculture sectors, will have a salutary impact on farmers who are reeling from high oil prices.
The public authority is probably going to give the alleviation to customers in the background of current political confusion. It likewise can’t increment oil demand that is now up to the limit of Rs50 per liter, pointed toward giving a lift to state incomes. As of now, the ex-warehouse cost of HSD is Rs293 per liter, as most would consider to be normal to be cut by Rs5.41 to Rs287.59 under the impending fortnightly audit. Then again, the cost of petroleum, which is utilized in motorbikes and traveler vehicles and is an option in contrast to compacted flammable gas (CNG), is probably going to be decreased by Rs3.86 to Rs278.14 per liter.
As of now, petroleum is valued at Rs282. Additionally, the cost of lamp oil, which is presently Rs186.07 per liter, is supposed to be sliced by Rs8.09 to Rs177.98 per liter. Lamp oil is utilized in far off regions, particularly in northern pieces of the country, for cooking, where condensed petrol gas (LPG) isn’t promptly accessible. At long last, the cost of light diesel oil (LDO), which presently remains at Rs174.68 per liter, is probably going to tumble to Rs163.10 per liter with a diminishing of Rs11.58.
LDO is consumed in industries.
Prices of JP-1 (local) and JP-8 may drop by Rs8.09 per litre each.
On the other hand, JP-4 is likely to become cheaper by Rs6.98 per litre.
Jet fuel has consumption in the aviation industry.
While revising petroleum prices, the currency exchange rate is also taken into consideration.
Since April 16, the dollar value has dropped by Rs2.57 against the rupee to Rs284.09.
Petroleum prices are also based on the current petroleum levy and general sales tax.
Additionally, prices will depend on Platts index from April 16 to 26, with only two days of data remaining.
Inland freight equalisation margin (IFEM) is also applied.
On petrol, it is Rs2.26 per litre whereas on HSD it is Rs4.38 per litre.
IFEM is a charge that oil marketing companies receive for transporting fuel to different parts of the country.
If the government decides to defer Pakistan State Oil’s (PSO) currency exchange rate adjustment, the ex-refinery petrol is expected to become cheaper by Rs15.86 per litre, from Rs216.74 to Rs200.88 per litre.
Similarly, the HSD price may fall by Rs29.41 per litre, from Rs234.06 to Rs204.65 per litre.
It is important to note that petroleum prices are subject to change due to various factors such as global oil prices, currency exchange rates, and government policies.