Govt 'likely to slash' petrol price by Rs10 per litre

• Development comes as ex-refinery price declines.
• Price of diesel is likely to go down by Rs4-5 per litre.
• New petroleum prices will be announced on May 31.

KARACHI: In order to provide relief to the inflation-weary people ahead of the upcoming federal budget 2023-24 — expected to be announced on June 9 — the government is likely to reduce the price of petroleum products, industry officials told The News.

The price of petrol is expected to go down by Rs10 per litre effective from June 1 following a decline in the ex-refinery price.

The industry officials said that the ex-refinery price of petrol is showing a decline of Rs10-12 for the next fortnight, however, the exchange rate adjustment will allow the government to pass up to Rs10 per litre relief only. 

"The ex-refinery price of diesel is showing Rs4-5 per litre decrease for the next review and the government may pass on this impact in the upcoming fortnightly review," an industry official said.

During the previous price review, the government reduced the price of diesel by Rs30, resulting in a decrease from Rs288 to Rs258 per litre. Similarly, the price of petrol was slashed by Rs12 to Rs270 from Rs282 per litre.

Officials said the global oil prices didn’t reflect any major decline and slightly increased whereas the exchange rate in the interbank market didn’t witness any major fluctuation during the fortnight. 

The government has been under pressure to reduce petroleum prices, which have been rising steadily in recent months. The recent decline in global oil prices has provided some relief, but the government is still facing difficulty in keeping prices down. 

The new petroleum prices will be announced on May 31.