By Staff Reporter
KARACHI: The petroleum product prices could fall by as much as Rs12 per liter starting Monday, according to estimates from industry officials, though the oil regulator dismissed such reports as purely speculative and not reflective of any formal process.
The anticipated reductions for the fortnight through Dec. 31 stem from fluctuations in international markets, with high-speed diesel poised for the steepest cut of about Rs11.80 per liter, or more than 4%, based on current tax rates and pending final calculations. Petrol prices, however, may remain unchanged given an estimated drop of less than Re1 per liter.
The government could incorporate an additional Rs1.28 per liter to cover increased margins for oil companies and dealers, 61 paise and 67 paise, respectively, as cleared by the cabinet’s Economic Coordination Committee earlier this week. Kerosene and light diesel oil are also slated for declines of Rs11.50 per liter, or 6%, and Rs10 per liter, or 6%. Those fuels currently retail at ex-depot rates of Rs192.86 and Rs173.77 per liter.
Petrol, priced at Rs263.45 per liter ex-depot, primarily fuels private cars, small vehicles, rickshaws and motorcycles, directly squeezing budgets for middle- and lower-middle-income households. High-speed diesel, at Rs279.65 per liter now and potentially dipping to 268 rupees, powers much of the transport sector, including heavy trucks, buses, trains and farm equipment like tractors, tube wells and threshers. That usage often fuels inflation, particularly lifting costs for vegetables and other food staples. Transporters jacked up fares earlier this year after diesel surged Rs27 per liter between May and August, yet they’ve held off on reversals even after a Rs9 cut.
Islamabad currently levies around Rs100 per liter on petrol and Rs96 on diesel. While general sales tax stands at zero across petroleum products, authorities impose a petroleum levy of Rs78 per liter on diesel and Rs82 on petrol and high-octane blending components, plus a Rs2.50 rupee climate support levy.
The Oil and Gas Regulatory Authority pushed back against the buzz in a statement, saying it had noted “speculative reports circulating in certain sections of the media regarding alleged initial working on petroleum prices” and emphasising that these “did not represent the authority’s stance or any formal exercise”. Ogra affirmed it calculates prices “strictly in line with the federal government’s instructions and within the prescribed timeframe.” “Any price-related computation will be submitted to the Federal Government as and when formally required, following established procedures and legal requirements,” the regulator added.
Ogra plans to forward its summary to the government on Dec. 15, ahead of a final call by the prime minister and notification from the Petroleum Division. The chatter builds on last month’s tweaks, when authorities trimmed petrol by Rs2 to Rs263.45 and high-speed diesel by Rs4.79 to Rs279.65 rupees, based on Ogra and ministry input.
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