Petrol, diesel prices likely to be slashed from May 1

• Finance Ministry to be make final decision after consulting PM.
• Global market witnesses reduction in crude oil prices.
• Currently govt is charging Rs60 per litre along with additional levy.
  

ISLAMABAD: The federal government is likely to reduce prices of petroleum products with petrol and diesel rates expected to be slashed by up to Rs8 per litre, sources told Geo News on Tuesday.

Due to the decline in crude oil prices in the global market in the past two weeks, the sources added, the government might reduce the petrol price by Rs5.04 and diesel by up to Rs8 per litre.

Meanwhile, kerosene oil and light diesel oil (LDO) prices are expected to be slashed by Rs8.03 and Rs5.4 per litre, respectively.

The Oil and Gas Regularly Authority (Ogra) hasn't forwarded its summary yet and the final decision on any reduction in petroleum product prices will be made by the Finance Ministry after consulting with the prime minister.

If the expected reduction in prices materialises, petrol will be reduced from Rs293.94 to Rs288 per litre and diesel from Rs290.38 to Rs 282.38 per litre for the next fortnight.

Whereas, new rate for kerosene oil will be Rs Rs85.05 instead of the current Rs93.08 per litre, also price for LDO will be reduced to Rs168.97 from Rs174.34 per litre.

According to The News, the new POL prices have been worked out based on the current government taxes. The internal freight equalisation margin on petrol will remain at Rs6.75 per litre and HSD Rs3.71 per litre. The sources stated that the premium for petrol is $9.60 per barrel, and for HSD it is $6.50 per barrel.

Data shows that the ex-refiner price of petrol may plunge to Rs205.80 from Rs210.68, HSD to Rs202.70 from Rs210.07 per litre, Kerosene to Rs175.46 from Rs183.49 and LDO to Rs162.85 from Rs168.02 per litre.

The government is also charging Rs60 per litre on petrol and diesel as the petroleum levy (PL) while dealers are getting dealers’ margin of 8.64 per litre on both products each. However, district margins (including extra margins) are also charged Rs7.87 per litre each on petrol and diesel.

It is to be noted that the government on April 15 had jacked up petrol and diesel prices by Rs 4.5 and Rs8.1 per litre, respectively.

Every 15 days, the government examines and modifies petroleum product prices in response to changes in the price of oil globally and in the value of the local currency.

The expected fuel consumption and supply costs of Pakistan State Oil, the state-owned oil corporation, as well as monthly tax targets, would be taken into consideration by the government when determining the prices of petroleum goods.