Mohsin Siddiqui (Chief Reporter)

caretaker government announced a reduction in ex-depot prices for major petroleum products on Friday, citing a substantial global drop in oil prices and the strengthening of the rupee against the US dollar. The new prices will be effective from December 16 to December 31, 2023.

As part of the fortnightly review, petrol and high-speed diesel (HSD) prices have been lowered by Rs14 per liter and Rs13.50 per liter (4.6 percent), respectively, starting from December 16. The petroleum levy (PL) remains unchanged at a maximum limit of Rs60 per liter for both products, and no GST is applied. Adjustments have been made in the inland freight equalization margin (IFEM) and dealers’ margins.

Following the reduction, petrol is now priced at Rs267.34 per liter, while HSD is available at Rs276.21 per liter. Kerosene oil, widely used in the defense sector and for cooking in remote areas, has seen a reduction of Rs10.14 per liter, bringing its price to Rs191.20 per liter. The price of Light Diesel Oil (LDO) has also been reduced by Rs11.29 per liter, now standing at Rs164.64 per liter.

Globally, both petrol and HSD prices have experienced a 5.5 percent decline over the past fortnight. The HSD’s average price dropped by about $4 per barrel, going from approximately $99.50 to $95.50. Petrol prices also decreased to $81.7 from $86.5 in the last fortnight (December 1-15). The Pakistani rupee gained marginally against the US dollar, reaching Rs284 from 285.5 on December 1.

In December, Attock Refinery Limited (ARL) faced challenges, shutting down two crude distillation plants due to reduced off-take of finished products by oil marketing companies (OMCs). ARL cited poor upliftment by OMCs, who preferred selling imported products to maximize profits from IFEM charges.