Petroleum prices likely to witness ‘significant cut’ on October 1

ISLAMABAD: Prices of all petroleum products are likely to witness substantial cuts if the ruling coalition government passes on the downward trend in the international oil market and does not increase the tax & levy with the start of next month of October.

According to sources in oil industry, the per litre prices of petrol and diesel are likely to be decreased by Rs.7.24 and Rs.16.61 during the next fifteen days of October if the government passes on the impact of the declining trend in the global oil market by not jacking up the rate of tax, levy imposed in the per litre of petroleum products.

At present the government is charging zero general sales tax (GST) on petroleum products while the rate of petroleum levy (PL) on petrol is Rs37.42 and on diesel it is Rs.7.58 per litre, said sources, adding, that the average price of crude oil has remained around 91 dollar per barrel from September 16 to 28 while the average prices of diesel and petrol remained at $115 and $ 81 per barrel respectively in the international oil market.

Sharing details of oil industry’s working regarding next fortnight, the sources said that ex-depot price of petrol has so far (!6th September to 28th September) registered Rs.7.24 decrease to Rs.230.19 per litre for the next fortnight compared to existing price of Rs.237.43 per litre.

Similarly, the ex-depot price of diesel has decreased by Rs.16.61 to Rs.230.82 per litre for the next fortnight compared to current price of Rs.247.43 per litre. Likewise, the ex-depot price of light diesel has been reduced by Rs.10.87 to Rs.186.41 per litre for the upcoming fortnight compared to Rs197.28 per litre presently. Moreover, the ex-depot price of kerosene has recorded a decline of Rs.14.20 to Rs.187.82 per litre against Rs.197.28 per litre currently.

According to the sources, the above-mentioned calculation of the ex-depot prices of petroleum products is based on the existing rate of petroleum levy, margin and commission which are part of per litre price of petroleum products.

Ahmad Ahmadani
Ahmad Ahmadani
The author is an investigative journalist. He can be reached at [email protected].

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