Over Rs9 reduction in diesel price expected
ISLAMABAD:
The price of diesel is expected to be significantly reduced by Rs9.11 per litre for the fortnight beginning on February 16 in line with fluctuations in global oil prices.
The price revision, in the upcoming review, will have a healthy impact on transport and agriculture sectors as diesel is widely used in these areas. The reduction will provide relief to businesses and individuals facing higher fuel costs.
Pakistan is a net importer of petroleum products therefore any reduction in their prices is attributed to movements in global markets. According to the latest calculation, the ex-depot price of high-speed diesel is likely to be slashed by Rs9.11 to Rs258.84 per litre. At present, the diesel price stands at Rs267.95 per litre.
However, prices of other petroleum products are expected to be reduced by smaller amounts.
The price of petrol is estimated to decrease by Rs2.49 to Rs254.64 per litre compared to the existing ex-depot price of Rs257.13. Kerosene oil and light diesel oil (LDO) prices are likely to go down by Rs3.45 and Rs5.60 per litre, respectively.
The price of kerosene, a vital fuel for low-income households, will reach Rs171.40 per litre compared to the current price of Rs174.85. Kerosene oil is also an alternative fuel for liquefied petroleum gas (LPG) and is mostly used in northern parts of the country where LPG is not available for cooking purposes.
Similarly, the price of LDO, which is consumed in certain industries, will be reduced from the current Rs161.06 to Rs155.46 per litre.
Local prices are calculated while considering the existing tax rates and the inland freight equalisation margin. There is no adjustment in terms of rupee-dollar exchange rate.
The government is currently charging Rs60 per litre in petroleum levy on petrol and high-speed diesel each. The levy was supposed to be invested in the development of oil sector like setting up storages but it has never been utilised for the intended purpose. The government used the revenue to meet its current expenditures.
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