Petrol, diesel prices could drop by Rs7.50 per liter on June 1

Petrol prices are expected to decrease on June 1, according to sources familiar with the development. The price of petrol and diesel may drop by approximately Rs6.50 to Rs7.50 per liter.

In the past 15 days, global market prices for petrol and diesel have decreased by $3.25 and $2.10 per barrel, respectively.

This follows a previous 15-day period where prices dropped by $8.7 and $4.3 per barrel. Currently, petrol is priced at Rs 273.10 per liter, and diesel is Rs 274.08 per liter.

Domestic oil distribution and calculations suggest that the price of petrol may decrease by Rs7.25, while diesel could see a reduction of Rs6.25. Additionally, the import premium on petrol has decreased by 7%, from $10.30 per barrel to $9.70 per barrel over the past 15 days.

However, the value of the rupee against the US dollar has decreased by 10 paisas in the same period, slightly affecting the potential savings.

The global market price of diesel has also dropped by $2.10 per barrel, while the benchmark import premium paid by Pakistan State Oil remains at $6.50 per barrel.

Thus, the price of diesel could decrease by Rs6.25 per liter, pending final calculations of the Inland Freight Equalization Margin (IFEM).

Overall, the global market price of petrol has decreased from approximately $95 per barrel to about $98.27 per barrel, and diesel from $99.12 per barrel to $97 per barrel.

This has led to a recent reduction in petrol and diesel prices across the country by Rs 15.93 and Rs 7.88 per liter, respectively, announced on May 16.

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