New price of petrol and diesel to be Rs285.38 and Rs298.18 from Oct 16

The interim government, if does not resort to adjustment of tax rates for petroleum products the petrol and diesel prices in Pakistan are expected to drop below Rs300 per litre in upcoming fortnightly review as global oil prices registered significant decline and the rupee is making gains.

The current petrol and diesel price stand at Rs323.38 and Rs318.18 per litre, respectively.According to sources, the price of petrol may drop by Rs34.57 to Rs288.38 per litre compared to the existing rate of Rs323.38.

Like petrol, the price of high-speed diesel (HSD) may go down by Rs16 to Rs30 per litre for the next fortnight.Petrol is mainly used in motorbikes and cars and is an alternative to compressed natural gas (CNG), especially in Punjab, where locally produced gas is not available at CNG filling stations.

At present, the government is charging Rs50 per litre as petroleum levy on HSD with room for a further increase of Rs10. However, the levy on petrol is already at the maximum level of Rs60 per litre.

The government could also keep the price unchanged by increasing levy Rs10 per litre as it aims at collecting Rs869 billion in levy during the current fiscal year in line with the IMF condition.