Will petrol price go down in Pakistan?

• Govt to review prices of petroleum products by midnight on July 15.
• Govt charging Rs50 per litre PL on HSD; IMF requires a Rs60 PL.
• Ex-depot price of petrol showing a Rs10.08 decline to Rs251.92.

KARACHI: Rupee appreciation will help slash the ex-depot petrol price for the next fortnight; however, the International Monetary Fund's (IMF's) condition, seeking a raise in the petroleum levy (PL), could deprive consumers of this much-needed respite, The News reported Saturday.

The government is set to review the prices of petroleum products by midnight on July 15 (today).

While the ex-depot price of high-speed diesel (HSD) shows no significant change, the petroleum levy on it may jack up its price for the end consumers in the next fortnight.

According to the oil industry, international prices of petroleum products have risen in recent days, but since the domestic currency has appreciated against the dollar after the IMF approved a $3 billion loan and released the first tranche of $1.2 billion, consumers could benefit from a cut in petrol price.

According to the working of the oil industry, the ex-depot price of petrol is showing a decline to Rs251.92 per litre for the next fortnight — a Rs10.08 drop from the existing price of Rs262 per litre.

Meanwhile, the ex-depot price of HSD is indicting a Rs3.66 increase to Rs264.16 per litre against its existing price of Rs260.50 per litre.

The price of light-speed diesel is showing a Rs1.43 per litre increase to Rs155.65 per litre compared to the existing price of Rs154.22 per litre.

Similarly, the ex-depot price of Kerosene is also showing a rise of Rs0.73 per litre to reach Rs171.78, compared to the current Rs171.05 per litre.

The exchange rate has helped slash the ex-depot price of petrol, while also keeping the increase in the ex-depot price of diesel lower.

The exchange rate is reflecting a decline of Rs8.42 per litre, which could bring the price of petroleum products down to Rs278.58 per litre for the next fortnight, compared to the existing price of Rs286.99.

The government is charging a Rs55 per litre petroleum levy on petrol, which was raised by Rs5 per litre in the last review of prices.

"It seems that government may raise the PL to Rs60 per litre in the next review of prices under the IMF conditions, which seek Rs60 per litre PL on petrol," people from the oil sector said.

The government is charging Rs50 per litre PL on HSD, whereas it is required to be raised to Rs60 per litre under the IMF conditions.

However, instead of raising the PL by Rs10, the government could increase it by Rs5 per litre.