The petroleum products prices in Pakistan have gone down by up to 57% from today for a month. Prices have gone down due to 30% drop in the international oil market. A decision will be made after consulting with the International Monetary Fund (IMF). However, the Oil and Gas Regulatory Authority (Ogra) has come up with 57% cut in the prices of different products. It will come in effect from May 1st on the basis of current tax rates.
Also read: Petrol Prices to Decrease from May 1
Presently, the benchmark Brent crude prices have jumped by 30pc to $20 a barrel from about $27 per barrel on 25th March. Since 25th Feb, the Brent crude price has gone down by almost 65%.
Ogra has calculated around Rs33.94 and Rs20.68 per litre reduction in high-speed diesel (HSD) and petrol prices respectively.
As per an official, the Ministry of Finance and the Federal Board of Revenue (FBR) are trying to pass on almost half of the price reduction calculated by Ogra to consumers. They will retain the rest as a windfall by increasing the rates of petroleum levy.
OGRA has also recommended around 31.6% drop in the price of HSD. The ex-depot price of HSD for the next month has been worked out at Rs73.31 from Rs107.25. This is a reduction of Rs33.94 per litre.
Also, Ogra has calculated the ex-depot price of petrol for next month at Rs75.90 per litre from Rs96.58 at present. This is a drop of 21.4pc or Rs20.68 per litre. The ex-depot price of kerosene will be dropped by 56.9pc or Rs44.07 per litre to reach Rs33.38 per litre from the current rate of Rs77.45.
Similarly, the ex-depot price of light diesel oil (LDO) will be reduced 39.3pc or Rs24.57 per litre to reach Rs37.94 per litre from Rs62.51 at present.