Fuel Price Update: Possible reduction of Rs.5 in Petrol Rates
Islamabad: The anticipated revision in fuel prices suggests a potential decrease of more than Rs5 in petrol prices, while high-speed diesel fuel (HSD) is expected to remain unchanged in the next review.
Sources indicate that the interim government is contemplating a reduction of Rs5.32 in petrol prices starting from January 16. Conversely, HSD prices are projected to remain steady, attributed to the recent decline in the prices of petroleum and petroleum products (POL) over the past two weeks. The strengthening of the rupee against the US dollar is also cited as a contributing factor in this decision, according to a government official who spoke to a newspaper. “The finalization of the new POL tariff, designed and set for implementation on January 16, 2024, is scheduled for January 15.
The data collected thus far reveals a reduction of Rs5.32 per unit in the price of motor spirit (MS) and a nominal decrease of Re 0.26 per liter in HSD. Over the 13-day period, there is also evidence of a decrease in the price of kerosene by Rs3.29 per liter and the price of diesel fuel (LDO) by Rs1.75 per liter.”
The government is likely to maintain the diesel fuel price at its current level, as initial estimates only suggest a modest reduction of 26 paisas. Additionally, the price of local jet fuel (JP-1) may witness a discount of Rs3.29 per liter. An official mentioned that the price of petrol might drop from the current Rs267.34 to Rs262.02 per liter, while the price of HSD is expected to remain constant at Rs276.21 per liter.
Similarly, it is anticipated that the price of kerosene will decrease by Rs3.20 per liter to Rs185.54 from the existing Rs188.83 per liter, and the price of LDO is projected to decrease by Rs1.75 to Rs164 per liter from the current Rs165.75 per liter. The data also indicates that the new ex-refinery price of petrol from January 16, 2024, is likely to be Rs180.29 per liter, compared to the existing MS refinery price of Rs185.61 per liter.
Likewise, the anticipated ex-refinery price of HSD is expected to decline to Rs195.80 from Rs196.06 per liter. The ex-refinery prices of kerosene and LDO are also projected to decrease to Rs176.88 per liter and Rs157.41 per liter, respectively, from the current rates of Rs180.17 and Rs159.16 per liter.
