ISLAMABAD: Prices of all major petroleum products are expected to decline by up to Rs4.50 per litre for the next fortnight ending January 31, following a downward trend in international oil markets, informed sources said on Wednesday.
Based on existing tax rates and preliminary calculations, the ex-depot price of petrol is likely to be reduced by around Rs4.50 per litre, while high-speed diesel (HSD) may see a cut of about Rs2.75 per litre. Final prices will be confirmed after approval by the federal government.
Similarly, the ex-depot price of kerosene oil is estimated to decline by Rs1.80 per litre (around 1pc), while light diesel oil (LDO) may become cheaper by Rs2 per litre (1.4pc). At present, kerosene and LDO are priced at Rs177.88 and Rs146.18 per litre, respectively.
The current ex-depot petrol price stands at Rs253.17 per litre, though consumers are paying over Rs254.40 per litre at retail outlets due to additional margins. Petrol is primarily used by private vehicles, motorcycles, rickshaws and small cars, directly impacting the budgets of middle- and lower-middle-income households.
Meanwhile, the ex-depot price of HSD, currently at Rs257.08 per litre, is expected to fall to around Rs254 per litre. Retailers are presently selling diesel at about Rs258 per litre.
Diesel prices carry significant inflationary implications as the fuel is widely used in heavy transport, railways and agricultural machinery, including trucks, buses, tractors and tube wells, contributing to higher food and commodity prices.
Despite a cumulative reduction of Rs17 to Rs20 per litre since October, transport fares remain unchanged after earlier hikes of around Rs27 per litre between May and August. Currently, the government is charging approximately Rs100 per litre in taxes on petrol and about Rs97 per litre on diesel, sources added.
Story by Khaleeq Kiani
