Oil prices are poised for another drop
With a potential Rs10 decrease starting September 15. This would mark the fourth consecutive reduction in petrol and diesel prices in Pakistan.
Recent reports highlight a significant decline in international petrol and high-speed diesel prices, which have fallen by about $5 per barrel over the last two weeks. Coupled with recent exchange rate fluctuations and prevailing tax rates, this suggests a potential price cut of Rs10 to Rs11 per liter.
However, there’s a possibility that the federal government might counter this price drop by increasing the petroleum levy by Rs5 per liter. This move would be aimed at bridging a Rs100 billion revenue gap reported by the Federal Board of Revenue (FBR) for the first two months of the fiscal year. Should this levy hike be enacted, the anticipated reduction in prices could be trimmed to around Rs5 to Rs6 per liter.
The final adjustment will hinge on the federal government’s decision regarding the petroleum levy and the latest calculations of exchange and tax rates.
