In response to fluctuations in the international market, the government announced a significant reduction in petrol prices and high-speed diesel (HSD) prices on Wednesday 15th May 2024.
The Ministry of Petroleum attributed the petrol prices cut to a “decreasing trend” in global petroleum prices over the past 15 days. Industry sources reported that in the last fortnight, international prices of petrol and HSD fell by approximately $8.7 and $4.3 per barrel, respectively.
During the same period, the import premium on petrol surged by over 7% to $10.30 per barrel, a rise from the previous $9.60 per barrel seen before April 30. Conversely, the HSD import premium, benchmarked by Pakistan State Oil, remained steady at $6.50 per barrel.
According to the finance ministry’s notification, the petro prices has been reduced by Rs15.39 per liter, setting the new price at Rs273.1 per liter. Meanwhile, High Speed Diesel prices have dropped by Rs7.88, now priced at Rs274.08 per liter.
The government has reached the Rs60 per liter limit for the petroleum development levy (PDL) on both petrol and HSD, contributing to a collection of Rs720 billion in the first nine months of the fiscal year ending March 31, 2024. This is part of a commitment to the International Monetary Fund to collect Rs869 billion in petroleum levy for the current fiscal year.
