ISLAMABAD – Another sigh of relief for inflation weary people is expected as the prices of petrol and diesel are set to be cut by up to Rs6 per litre from September 1.

This anticipated drop comes as international oil prices moved down by $2 to $2.30 per barrel over the last fortnight. In account of exchange rates and current tax rates, the price reduction for both petrol and diesel is projected to be between Rs 5-5.50 per litre.

If the government moves ahead with the expected price cut, the petrol price will come down to Rs254 per litre. 

In global oil markets, the average price for petrol saw cut if to around $80.40 per barrel, down from $82.50, while diesel prices have dropped to around $88 per barrel from $90.30.

Furthermore, the premium for petrol also slashed by about 50 cents per barrel to $8.50, though the premium for diesel remains unchanged at $5 per barrel. The local currency has also appreciated by 25 cents against the US dollar in the last two weeks.

In late August, the ex-depot price for petrol stands at Rs 260.96 per litre, while diesel is priced at Rs 266.07 per litre. On August 14, Pakistani government had reduced petrol and HSD prices by Rs 8.47 and Rs 6.70 per litre, respectively.

During last two reviews, total reductions in petrol is over 17 per litre.