ISLAMABAD – Petrol and diesel prices are expected to drop below Rs300 per litre in Pakistan in upcoming fortnightly review as global oil prices registered significant decline and the rupee is making gains.

The current petrol and diesel price stand at Rs323.38 and Rs318.18 per litre, respectively.

Reports said the caretaker federal government is likely to cut diesel price by Rs20 and petrol price by Rs38 per litre from the October 16, 2023.

Expected Petrol, Diesel Prices from Oct 16

If the cut in petroleum prices is approved, the new price of per litre petrol would drop to Rs285.38 and diesel price Rs298.18 from October 16.

Levy on Petroleum Products

The government currently receives petroleum development levy of Rs50 per litre on per litre high-speed diesel. The government could also keep the price unchanged by increasing levy Rs10 per litre as it aims at collecting Rs869 billion in levy during the current fiscal year in line with the IMF condition.

Currently, the government is charging about Rs82 per litre tax on petrol and Rs73 on HSD.

Petrol and diesel prices have remained above Rs300 per litre since Sept 1 after these were jacked up by the government.