The federal government may offer major relief to citizens in the first two weeks of April as a result of the significant price down in the worldwide diesel market.
According to reports, the federal government intends to announce a significant decrease in ex-depot fuel prices of up to Rs. 14 per litre based on the current petroleum levy and general sales tax, which will take effect on 1 April.
The cost of high-speed diesel (HSD) is expected to drop by Rs. 14.31 per litre in the current environment of severe inflation, providing the general public with a much-needed reprieve.
In the transportation and agriculture sectors, diesel is essential. Farmers would particularly benefit from the price drop now that crop planting season has started.
If the government decides to completely lower prices for consumers, diesel will cost Rs. 278.66 per litre as opposed to its present Rs. 293 per litre pricing.
Oil marketing companies forecast that the cost of petrol will drop by Rs. 3.51 per litre.
Petrol is a potential option to CNG shops in Punjab because they rely on imported gas, particularly in the winter when LNG is not readily accessible.
A cross-subsidy programme for fuel consumption of Rs. 120 billion is now being developed by the government. Owners of premium cars would pay an additional Rs. 50 per litre, and motorbike and small vehicle owners will receive an equivalent price break.
The government has the opportunity to reduce the price of petrol and provide assistance to consumers from lower-income and middle-class backgrounds.
The price of petrol will drop from the present rate of Rs. 272 per litre to Rs. 268.49 per litre if the entire reduction is passed on to customers.
Kerosene oil prices may also decrease by Rs. 13.46 per litre and light diesel oil (LDO) prices may decrease by Rs. 10.28 per litre. In isolated locations, kerosene oil is a vital household fuel for cooking and heating, and the price cut could lower it from Rs. 190.29 to Rs. 176.83 per litre. LDO could also experience a decrease, from Rs. 184.68 per litre to Rs. 174.40.
The cost of supplies from Pakistan State Oil (PSO) is used to determine the pricing. The government may approve a modification to the exchange rate of Rs. 6 per litre for petrol and Rs. 15 per litre for HSD. The value of the US dollar relative to the Pakistani rupee has increased by 4.66 in the last 13 days.
As of April 1, the government must increase the petroleum tax on HSD by Rs. 5 to Rs. 50 per litre in order to comply with an International Monetary Fund (IMF) demand. Since November 2022, the government has already imposed a 50 rupee per litre petroleum fee on petrol.