The prices of major petroleum products, including petrol and high-speed diesel (HSD), are projected to see a reduction starting November 1, offering relief to the public. This decrease follows minor adjustments in the international oil market.
Global Market Fluctuations Drive Price Reduction
Over the past fortnight, the global prices of petrol and HSD witnessed slight declines. Informed sources indicate that the average petrol price dropped from approximately $77.5 to $76 per barrel, while HSD went down from $86.5 to about $84 per barrel. These shifts, coupled with stable import premiums, contributed to the anticipated Rs2-3 per litre reduction for Pakistani consumers.
Potential Relief for Private Transport and Agriculture Sectors
With petrol widely used by private vehicles, rickshaws, and two-wheelers, this reduction promises much-needed financial ease for middle- and lower-income households. On the other hand, HSD, which powers essential agricultural and transport machinery, also influences food prices, making this reduction beneficial for a range of industries reliant on diesel.
Tax Structure and Current Petroleum Levies
Currently, the government levies Rs76 per litre in taxes on both petrol and diesel, including Rs60 as petroleum development levy (PDL) and Rs16 as customs duty. A further Rs17 per litre accounts for distribution and dealer margins, impacting the overall end-user price. This price adjustment will still include these taxes and levies, though the global price drop offers partial relief.
