The prices of petroleum products in Pakistan are likely to decrease by Rs2 to Rs3 per liter starting November 1, reflecting a decline in global market prices. Reports indicate that the average price of petrol in the international market has dropped to $76 per barrel, down from $77.5, while the price of high-speed diesel has decreased from $86.5 to $84 per barrel over the past 15 days.
This expected reduction comes after the government increased the price of high-speed diesel by Rs5 per liter on October 15, while keeping petrol prices unchanged. The possible price cuts would follow earlier reductions on September 30, when the government lowered the price of petrol by Rs2 per liter and high-speed diesel by Rs3.40.
Currently, petroleum products in Pakistan are subject to a significant tax burden. A petroleum development levy of Rs60 and a customs duty of Rs16 per liter are imposed, making up a total of Rs76 in taxes for both petrol and diesel. Additionally, distribution and sales margins of around Rs17 per liter are collected by oil companies and dealers.
