ISLAMABAD - The Petroleum Division has anticipated a reduction of up to Rs 40 per litre in POL prices for the next fortnightly. On the directive of the prime minister, the Petroleum Division has moved a summary to Finance Division on Wednesday, which is one day earlier from the schedule, and has recommended a decrease in the prices of almost all the petroleum products, official source told The Nation.

The source said that in case the government passed on the entire benefit of reduction in international crude oil prices to the consumers and does not impose General Sales Tax (GST) on the petroleum products for the next fortnightly, the consumers will get big relief. However, if the government imposes GST, then the reduction will be nominal. On Wednesday, the Brent Crude prices were $99/barrel.

As per the calculation, based on current rate of petroleum levy (PL), the ex-depot price of petrol may come down by Rs 17.21 per litre, high speed diesel (HSD) by Rs 40.78 per litre, kerosene oil (SKO) by Rs 30.38 per litre and light diesel oil (LDO) by Rs 32.38 per litre. In case the government approved the entire reduction, the price of petrol will come down from Rs 248.74 to Rs 231.53/litre, HSD from Rs 276.54 to Rs 235.76 per litre, SKO from Rs 230.26 to Rs 199.88 and LDO from Rs 226.15 to Rs 199.77 per litre.

Earlier, Prime Minister Shehbaz Sharif had directed to pass on the full benefit of the fall in oil prices in global market to the consumers with full transparency.

At present, the PL on petrol stands at Rs10/litre, on HSD, SKO and LDO at Rs 5/ litre each while sales tax is zero. It is worth to mention here that National Assembly approved a rise in the maximum limit of PL from Rs 30/litre to Rs 50/ litre to achieve the budgetary target of Rs 750 billion in Finance Bill 2022-23.

In last 15 days, international crude oil price dropped to $99/barrel from $113/ barrel.