Effective from May 1, 2023, the price of high-speed diesel (HSD) in Pakistan is expected to drop by Rs5.41 per litre due to the weakening of global oil prices. This will provide some relief to farmers and other consumers who have been grappling with high oil prices. The government is likely to pass on this benefit to consumers in the backdrop of the current political chaos, despite being unable to increase the petroleum levy that is already at the maximum of Rs50 per litre to boost state revenues.
Currently, the ex-depot price of HSD is Rs293 per litre, which is expected to be slashed by Rs5.41 to Rs287.59 under the upcoming fortnightly review. Meanwhile, the price of petrol, used in motorbikes and passenger cars and as an alternative to compressed natural gas (CNG), is likely to be reduced by Rs3.86 to Rs278.14 per litre from the current Rs282.
Kerosene oil, used in remote areas for cooking purposes where liquefied petroleum gas (LPG) is not readily available, is also expected to become cheaper. Its price is currently at Rs186.07 per litre and is likely to be slashed by Rs8.09 to Rs177.98 per litre. Lastly, the price of light diesel oil (LDO), consumed in industries, is expected to decrease by Rs11.58 to Rs163.10 per litre from the current Rs174.68 per litre.
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The prices of JP-1 (local) and JP-8 may also drop by Rs8.09 per litre each, whereas JP-4 is expected to become cheaper by Rs6.98 per litre. It is important to note that petroleum prices are subject to change due to various factors such as global oil prices, currency exchange rates, and government policies. The final prices will depend on Platts index from April 16 to 26, with only two days of data remaining, and inland freight equalisation margin (IFEM) applied. On petrol, IFEM is Rs2.26 per litre whereas on HSD, it is Rs4.38 per litre.
