The government is likely to slash prices of diesel and petrol by Rs15 and Rs5, respectively from October 1, 2022, as the POL rates nosedived in the international markets, sources within the industry said Tuesday.
Sources revealed that the cut in POL prices will be made for the next fortnight, based on the estimates figured by oil industry experts.
They said that the calculation of the new price would be based on the oil rate in the international markets till September 29.
“If the government chose to maintain the petroleum levy at the current level then the POL prices will decline,” they added.
Under an agreement with the International Monetary Fund (IMF), the government has to collect PL on petroleum products.
According to a notification issued on September 01, the imposition of petroleum levy on petrol stands at Rs37.50 per litre and on diesel at Rs7.50 per litre.
The government increased the price of petrol from Rs235.98 to Rs237.43 on September 21 but kept the price of High-Speed Diesel (HSD) unchanged at Rs247.43.
The price of kerosene was slashed by Rs8.30 from Rs210.32 to Rs202.02 and the price of light diesel oil was reduced by Rs 4.26 from Rs201.54 to Rs197.28.