ISLAMABAD: The government is poised to announce a substantial reduction in petroleum prices, potentially lowering costs by up to Rs12 per litre starting June 15.
This expected price cut is driven by a $5.14 per barrel drop in global oil prices, likely resulting in a Rs12 per litre decrease in petrol prices in Pakistan.
Since April 16, petrol prices have already been reduced by Rs24 per litre, while diesel prices have seen a Rs20 per litre decrease.
On June 1, it was revealed that the government’s last-minute decision to adjust petrol prices stemmed from a strong disagreement between the prime minister and the finance minister. The finance minister urged a reconsideration of the price cut amid ongoing IMF negotiations, according to insider sources.
The government has collected over Rs900 billion through the petroleum development levy (PDL) on petroleum products within the first 11 months of the current fiscal year, surpassing the annual target of Rs869 billion.
The reduction in prices led to a surge in demand for petroleum products, reaching a nine-month high of 1.4 million tons in May 2024. Total consumption for the July-May 2023-24 period reached 13.8 million tons, as reported by Topline Research.
Topline Research analyst Myesha Sohail noted that PDL tax collection hit Rs907 billion in 11 months of FY24, projecting potential revenue of Rs990 billion to Rs1 trillion, based on a monthly average collection of Rs80-85 billion.
