Expect a significant drop in diesel prices.
If diesel prices significantly drop on the global market, the government may be forced to offer significant relief to petroleum consumers for the first two weeks of April.
According to sources, the federal government may announce a significant reduction in ex-depot fuel prices of up to Rs14 per liter on April 1, 2023, based on the current petroleum levy and general sales tax.
In the ongoing high inflationary climate, the cost of fast diesel (HSD) is probably going to diminish by Rs14.31 per liter, which is a welcome help for shoppers.
Diesel is used a lot in the transportation and agricultural industries. Any decrease in the price of the crop will be especially encouraging to farmers now that the sowing season has begun.
If the government provides consumers with full price relief, diesel will cost Rs278.66 per liter, compared to the current price of Rs293 per liter.
In the meantime, oil marketing firms anticipate a Rs3.51 per liter decrease in gasoline prices.
Compressed natural gas (CNG) can be replaced with petroleum products, especially in Punjab, where CNG outlets import gas. Be that as it may, LNG was not made accessible to them during the latest winter.
The government is currently working on a Rs120 billion gasoline cross-subsidy program. It expects to charge extravagance vehicle proprietors a greater cost of Rs50 per liter while offering cost help comparable to that for little vehicles and cruisers.
In order to assist consumers from the lower middle class and the poor, the government has an opportunity to lower the price of gasoline at this time.
The ongoing cost of Rs272 per liter of fuel will be decreased to Rs268.49 per liter assuming that the whole help is given to buyers.
Kerosene oil may decrease in price by Rs13.46 per liter, and light diesel oil (LDO) may decrease in price by Rs10.28 per liter.
Kerosene oil is an important household fuel because it is used for cooking and heating in remote areas. Instead of Rs190.29 per liter, it might cost Rs176.83. LDO could be sold for Rs174.40 per liter, down from Rs184.68 per liter now.
The price calculation is based on the Pakistan State Oil (PSO)-borne cost of supply. The government may approve an adjustment of Rs6 per liter for gasoline and Rs15 per liter for HSD. Over the past 13 days, the Pakistani rupee has strengthened against the US dollar by Rs4.66.
Beginning on April 1, the government must raise the petroleum levy on HSD by Rs5 to Rs50 per liter to meet an IMF requirement.
It has been imposing a petroleum tax of Rs50 per liter on gasoline since November 2022.