ISLAMABAD: The government is likely to reduce prices of all petroleum products by up to Rs 11.85 per litre for the next fortnight starting from December 16, due to a decline in oil prices in the international market. However, the full impact may not be passed on to end consumers due to an increase in the margins of oil marketing companies (OMCs) and dealers.
Based on existing tax rates, the ex-depot price of high-speed diesel (HSD) is likely to be reduced by around Rs11.85 per litre (about 4.2 pc), depending on the final calculation, while the petrol rate would also come down to around Rs 36 paisa per litre or 0.1 pc.
The ex-depot prices of Kerosene oil and light diesel oil (LDO) are also likely to be decreased by Rs 11.70 (6.1 pc) and Rs 10.01 per litre (6.1 pc), respectively. The kerosene and LDO rates currently stand at Rs 192.86 and Rs 163.77 per litre, respectively.
The ex-depot petrol price currently stands at Rs 263.45 per litre, which may come down to Rs263.09 per litre.
The ex-depot price of HSD stands at Rs 279.65 per litre, which may drop to Rs 267.80 per litre on Dec 16.
On December 9, the Economic Coordination Committee (ECC) of the cabinet approved an additional Rs2.56 per litre margin for petrol and diesel to boost the profitability of OMCs and their dealers.
Although the General Sales Tax (GST) is zero on all petroleum products, the government is charging Rs 78 per litre on diesel and Rs 82 per litre on petrol and high-octane products on account of the petroleum development levy and the climate support levy. This also includes Rs 2.50 per litre CSL.
The government recovered approximately Rs1.161 trillion through the petroleum levy alone in fiscal year 2024-25 and expects this to jump up by about 27 percent to Rs 1.470 trillion during the current fiscal year.
Copyright Business Recorder, 2025
