As per a recent report by Arif Habib Limited (AHL), petrol (Motor Spirit) is likely to become Rs6.82 cheaper per liter, while High-Speed Diesel (HSD) might see a reduction of Rs1.68 per liter. This means the new expected rates could be Rs265.33 for petrol and Rs282.67 for diesel.

According to the report, these reductions are due to falling ex-refinery prices (the price before taxes and levies). The average Brent crude oil price between July 16 to 31 was around $68.75 per barrel, while WTI averaged $65.98.

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The exchange rate also stayed fairly stable at Rs284.25 per USD, with only a minor 0.1% change. Interestingly, while prices are dropping, the government may bring back the petroleum levy of Rs2.50 per liter on both petrol and diesel which was previously adjusted or reduced.

For everyday people especially those relying on personal transport or working in delivery and logistics every rupee counts. At a time when costs are high everywhere, this tiny reduction in fuel prices is a welcome change.

On the other hand, the benefit can be subtly diminished if the Rs2.50 levy is reinstated. Therefore, even though the price per liter is technically lower, if the levy remains in place or rises in the future, the public may not fully benefit from the savings.