Petrol and diesel prices are expected to drop from May 1, as per insider sources. The government is considering reducing petrol rates by about Rs 5.04 and diesel by up to Rs 8 per litre due to the recent dip in global crude oil prices.
Moreover, kerosene oil and light diesel oil (LDO) prices may also see a decrease by Rs 8.03 and Rs 5.4 per litre, respectively.
The Oil and Gas Regulatory Authority (Ogra) is yet to present its summary, and the final decision rests with the Finance Ministry after consultation with the Prime Minister.
If the proposed reductions materialize, petrol could drop from Rs 293.94 to Rs 288 per litre, and diesel from Rs 290.38 to Rs 282.38 per litre. Similarly, kerosene oil may be priced at Rs 85.05 instead of the current Rs 93.08 per litre, while LDO could be reduced to Rs 168.97 from Rs 174.34 per litre.
These calculations are based on current government taxes, with internal freight equalization margins and premiums for petrol and HSD set at certain levels.
On April 15, the government raised petrol and diesel prices by Rs 4.5 and Rs 8.1 per litre, respectively. Every 15 days, the government reviews and adjusts petroleum product prices based on global oil price fluctuations and local currency value.
Factors such as expected fuel consumption and supply costs of Pakistan State Oil, along with monthly tax targets, are considered by the government when determining petroleum product prices.