Petrol Price Set to Drop by Rs1.87 per litre

Introduction:

The upcoming fortnight in June brings mixed news for fuel consumers in Pakistan. While the price of petrol is expected to decrease by Rs1.87 per litre, diesel might become costlier by Rs3.29 per litre. These adjustments in fuel prices, based on the rates of petroleum levy and general sales tax, will have implications for both individuals and industries relying on these fuels.

Petrol Price Reduction:

According to industry sources, the proposed reduction in petrol price is attributed to various factors. Pakistan State Oil (PSO) estimates an exchange rate adjustment of Rs3.50 per litre, contributing to the overall reduction. Additionally, the Inland Freight Equalisation Margin (IFEM) imposed by the government amounts to Rs4.04 per litre. If approved, the new ex-depot rate for petrol would be Rs260.13 per litre, providing some relief to motorists.

Diesel Price Increase:

On the other hand, diesel users may face an increase of Rs3.29 per litre. The exchange rate adjustment for diesel stands at Rs0.31 per litre, and the government applies an IFEM of Rs3.79 per litre. The potential rise in diesel price raises concerns among consumers who heavily rely on diesel for transportation and power generation. Industries such as transportation, agriculture, and manufacturing, which depend on diesel as their primary fuel source, may also be affected by this increase.

Kerosene Oil and Light Diesel Oil:

Apart from petrol and diesel, adjustments are also expected in the prices of kerosene oil and light diesel oil (LDO). Kerosene oil might rise by Rs2.10 per litre, reaching an ex-depot price of Rs166.17 per litre. The price of LDO may increase by Rs2.48, making it Rs150.16 per litre. These changes can impact households using kerosene oil for cooking and industries that rely on LDO for various purposes.

Implications for Consumers and Industries:

The fluctuations in fuel prices reflect the government’s efforts to strike a balance between stabilizing the economy and addressing energy sector challenges. While the decrease in petrol price provides some relief to motorists, the substantial increase in diesel price poses challenges for different sectors. Industries dependent on diesel, including transportation, agriculture, and manufacturing, may experience increased costs, impacting their overall operations and profitability.

Conclusion:

As the petrol price is expected to fall and diesel price to rise, consumers and industries in Pakistan are likely to face both benefits and challenges. The government aims to manage fiscal constraints while keeping consumer prices at fair levels. While motorists may experience reduced fuel costs, industries reliant on diesel may have to cope with increased expenses. Striking a balance between these factors remains crucial to ensure sustainable economic growth and stability in the energy sector.