According to a report, on Thursday, Pakistan is anticipated to witness a decline in petroleum product prices in the upcoming price review scheduled for April 30, attributable to a global downtrend in oil prices.
Diesel and gasoline prices have decreased by $4.3 per barrel and $1.86 per barrel, respectively, in the international market, potentially resulting in a reduction of Rs7.85 and Rs3.75 in domestic markets. Diesel is currently priced at $104.76 per barrel, and petrol at $107.16 per barrel globally.
Industry experts note that the downward trend in petroleum product prices globally may influence local costs as well.
The final data will be reported on April 29, taking into account pricing trends over the preceding fifteen days. However, experts caution that global prices remain volatile, making future projections uncertain.
During the most recent biweekly pricing review on April 15, 2024, the government raised the price of petrol by Rs4.53 per litre to Rs293.94, and high-speed diesel by Rs8.14 per litre to Rs290.38. The government reviews and adjusts petroleum product prices every fifteen days in response to global oil price fluctuations and local currency value changes.
Since the last price adjustment, the Pakistani rupee has slightly depreciated against the US dollar, trading around Rs278.39 on Wednesday. When determining petroleum product prices, the government considers factors such as expected fuel consumption, supply costs of Pakistan State Oil, monthly tax targets, and the country’s balance of payments situation.
Pakistan heavily relies on oil imports for about 85% of its oil needs, contributing to its balance of payments challenges and inflationary pressures.
In July 2023, the government entered a $3 billion loan agreement with the International Monetary Fund (IMF) to address economic stability, committing to various austerity measures, including tax hikes, energy cost increases, and a market-based exchange rate.
The rising petroleum prices are expected to impact the country’s cost of living and transportation expenses.
