Prices of petroleum products in Pakistan have plummeted for a month from today by up to 57 per cent. Prices have dropped due to an foreign oil price drop of 30 per cent.

A decision is to be made after consultation with the International Monetary Fund (IMF). The Oil and Gas Regulatory Authority (Ogra) has, however, come up with a 57 percent cut in the prices of various goods. This will come into force on the basis of existing tax rates as from 1 May.

Currently, the Brent oil price benchmark jumped from around $27 a barrel on March 25th by 30pc to $20 a barrel. Since 25 February, the oil price of Brent has plummeted by almost 65%.

Ogra has estimated a decrease in high-speed diesel (HSD) and petrol prices around Rs33.94 and Rs20.68 per litre, respectively.

According to an official, the Ministry of Finance and the Federal Revenue Board (FBR) are attempting to pass nearly half of Ogra’s price reduction on to customers. We would maintain the remainder as a windfall by increasing petroleum levy rates.

OGRA also suggested a decrease in HSD prices of about 31.6 per cent. HSD’s ex-depot price for the next month was worked out from Rs107.25 on Rs73.31. This reflects a reduction of Rs33.94 per litre.

Ogra has also estimated the next month’s ex-depot price of petrol at Rs75.90 per litre from Rs96.58. This is a reduction of 21.4pc per litre, or Rs20.68.

Kerosene’s ex-depot price would drop by 56.9pc or Rs44.07 per litre, to hit Rs33.38 per litre from the present Rs77.45.

Similarly, at present, the ex-depot price of light diesel oil (LDO) will be reduced by 39.3pc or Rs24.57 per litre, to reach Rs37.94 per litre.