The federal government plans to keep the petrol prices unchanged deposited estimates showing there was room for price reduction, Business Recorder reported on Friday.

Estimates of Oil Marketing Companies (OMCs) show that the petrol and kerosene oil prices may be decreased by up to Re1 per litre while the prices of high-speed diesel and light diesel oil may be increased by Rs2 per litre.

Estimates of OMCs are based on zero adjustments in the exchange rate, current petroleum levy rates and general sale tax rates, according to Business Recorder.

However, the government “may sustain the prices of petroleum products in the first half of January 2024 following a marginal increase in the prices of Brent globally,” the leading business daily said.

The benchmark Brent price experienced a fluctuation in the second half of December, but it remains below the $80 mark.

The new petroleum prices, likely to be announced on December 31, would be applicable in the first half of January as part of the government’s fortnight revision in view of international oil rates.

The government is charging Rs60 per litre petroleum levy on petrol and HSD and zero rates on GST.

Brent crude futures were up 18 cents, or 0.2%, at $77.33 a barrel at 0126 GMT on Friday, the last trading day of 2023, while the US West Texas Intermediate (WTI) crude futures were trading 11 cents higher at $71.88 a barrel in early Asian trade.

International oil prices were set to end 2023 about 10% lower, following geopolitical concerns, production cuts and global measures to rein in inflation triggered wild fluctuations in prices. It would be the first annual decline in two years.

On December 15, the caretaker government slashed the price of petrol by Rs14 per litre and high-speed diesel by Rs13.5. The price of petrol is now Rs267.34/litre and HSD is Rs276.21/litre.