The government is poised to announce a significant decrease in petroleum prices, potentially slashing costs by up to Rs12 per liter starting June 16.
This expected price reduction is attributed to a $5.14 per barrel decline in global oil prices, which is anticipated to result in a Rs12 per liter drop in petrol prices in Pakistan.
Since April 16, petrol prices have already been reduced by Rs24 per liter, while diesel prices have seen a Rs20 per liter decrease.
Read more: Petrol price cut by Rs15 per litre, diesel by Rs7.88
On June 1, it was revealed that the government’s last-minute decision to adjust petrol prices arose from a strong disagreement between the prime minister and the finance minister. Insider sources reported that the finance minister advocated for a reconsideration of the price cut amid ongoing IMF negotiations.
The government has amassed over Rs900 billion through the petroleum development levy (PDL) on petroleum products within the first 11 months of the current fiscal year, surpassing the annual target of Rs869 billion.
The price reduction has led to a surge in demand for petroleum products, reaching a nine-month high of 1.4 million tons in May 2024. Total consumption for the July-May 2023-24 period reached 13.8 million tons.
PDL tax collection reached Rs907 billion in the first 11 months of FY24, projecting potential revenue of Rs990 billion to Rs1 trillion, based on a monthly average collection of Rs80-85 billion.
