Petrol price may be cut by Rs8.38, diesel Rs7.70

ISLAMABAD: The price of petrol is likely to decrease by Rs8.36 per liter and diesel by Rs7.70 from August 16 for next fortnight mainly because of low consumption by big economies.

On account of heavy rains in the regional countries, the POL consumption has also reduced leading to low demand of petroleum products causing the reduction in prices. In India, the usage of diesel has reduced manifold owing to which its price in the international market also tumbled.

There was a fear of a hike in POL products as Iran had threatened an attack on Israel after the assassination of Hamas’s political leader Ismail Haniyeh. However, there exists a stability in the Middle East as yet amid the US announcement to move a fighter jet squadron to the area and maintain an aircraft carrier in the region to help defend Israel from possible attacks by Iran and its proxies.

According to the official sources, the petrol price may go down by Rs8.16 per liter, diesel Rs7.70, Kerosene oil Rs7.71 and light diesel oil is likely to reduce by Rs4.49 per liter. Three days are still to go till August 16 and more fluctuations in the POL prices can be observed, so the final figures for POL new prices are yet to yet to be firmed up. However, the trend of reduction in POL prices in the international market is underway.

The new price of petrol may be set at Rs261.07 from Rs269.43 per liter and HSD at Rs265.05 from the existing price of Rs272.77. Likewise, the new price of kerosene oil is projected to be set at Rs170.23 from Rs177.39 and LDO at Rs156.04 from Rs160.53 per liter.

The government earlier on August 1, 2024 reduced the petrol price by Rs6.17 per liter and high speed diesel by RS10.86 per liter. The Internal Freight Margin on petrol stands at Rs7.79 per liter and HSD RS4.51 per liter. The premium on petrol stands at $8.48 per barrel and on HSD at $5 per barrel.