Petrol price likely to go down for first half of September 2022

ISLAMABAD: The price of petrol is likely to go down in the range of Rs14 to 20 per litre while the price of High-Speed Diesel (HSD) may be jacked up between Rs1 to 4 per litre for the first fifteen days of September 2022.

However, there will be no reduction in petrol price in the next fortnight if the government increases the Petroleum Levy (PL) and adjusts the arrears of exchange loss on the Free on Board (FOB) basis, said sources in the oil industry on Monday.

Sources said that petrol price is likely to be decreased in the range of Rs14 to 20 per litre while the price of HSD is expected to go up between Rs1 to 4 per litre. They said that the cash-starved government may jack up the PL and is also likely to adjust the arrears of exchange loss in petroleum prices for the first half of September. They said if the government increases the PL and adjusts the arrears of exchange loss then there are less chances that the price of petrol would go down while the HSD price may witness substantial hike if the government imposes sales tax on the sale of diesel in the first fifteen days of September 2022.

However, the petrol price has witnessed a cut in the global oil market, said the sources in the oil industry. They added that the government has so far not adjusted the exchange loss which is at Rs23 per litre on petrol and Rs13 on diesel.

Inflation-hit masses might not receive the benefit of petroleum price cut in the international oil market particularly of petrol and may face a hike in the price of diesel during the first half of September 2022, said sources. They added that the government is likely to collect Rs60 billion in the month of September on account of PL and Rs31 billion under the head GST.

Reportedly, the government is more likely to collect 10.5 percent GST which is frozen for the last six months and Rs30 per litre petroleum levy, in addition to the collection of dealers and distribution companies’ margins.

It is pertinent to mention that the petrol is currently available at Rs233.91 per litre, diesel at Rs244.44 per litre, kerosene oil at Rs199.40 per litre, and light diesel oil is being sold at Rs191.75 per litre in Pakistan.