The government has cut the petrol price by Rs1.86/ltr and the high-speed diesel rate by Rs3.32 per litre as part of the fortnightly revision of the fuel prices.

The petrol rate decreased from Rs260.96 to Rs259.10 while the high-speed diesel price fell from Rs266.07 per litre to Rs262.75/ltr after a drop in fuel prices.

The Kerosene oil rate has seen a decrease of Rs2.15 per litre, with prices dropping from Rs171.77 to Rs169.62. The light diesel oil prices have also been cut by Rs2.97/ltr, reducing the cost from Rs157.02 to Rs154.05.

It is pertinent to mention that a fall in the prices of petroleum products was expected amid a decrease in international oil prices.

Pakistan’s fuel rates are determined by a pricing formula approved by the government.

In the fiscal year budget, the government increased the maximum petroleum levy from Rs60 to Rs70 per litre to collect Rs1.28 trillion. The target is nearly Rs150 billion higher than the previous year’s collection of Rs1.019 trillion and exceeds the budget target of Rs869 billion.

The government has imposed about Rs78 per litre tax on petrol and HSD.

Additionally, it levies around Rs8 per litre in customs duties on petrol and HSD, regardless of whether they are produced locally or imported. Oil companies and their dealers also receive approximately Rs17 per litre in distribution and sale margins.

Earlier in the day, the government increased the liquefied petroleum gas LPG price by Rs6.99 per kilogramme. The household LPG cylinder price has gone up by Rs82.54.

Analysts have lowered their 2024 oil price outlook due to weak fuel demand from leading importer China and rising inventory levels as Saudi Arabia and OPEC+ allies prepare to ease some output cuts from October, a Reuters poll found.

The poll of 37 analysts and economists surveyed by Reuters in the last two weeks forecast Brent crude would average $82.86 per barrel in 2024, a fourth straight cut in estimates, from $83.66 forecast in July.

The poll showed US crude would average $78.82 this year, slightly lower than last month’s estimate of $79.22.