The government has slashed the cost of jet fuel in Pakistan amidst continued easing of prices of petroleum products in the international market. This latest price cut will certainly come as good news to the aviation industry.
The cost of jet fuel has been reduced to Rs471.01 per litre, having been decreased from Rs494.71. Moreover, the cost of light diesel has been slashed by a higher degree to Rs299.32, from Rs369.36 per litre.
Airlines stand to gain from the fresh price adjustment.
This step is being taken in view of the negative trend in the oil markets around the world. The airlines were under severe pressure over the past few weeks because of the rising prices of jet fuel owing to global tensions. As a result, many cut down their number of flights and stopped offering discounts to passengers. The reduced rates will assist in lowering the expenses and provide some relief.
Consumers and the economy receive much-needed support.
Moreover, the move by the government is also an indication of the decline in global oil prices, which favor various industries in the country. Reduced fuel prices will reduce the cost of operations in the transport industry.
Economists keep track of how fast airlines can reduce their prices for customers. They are hoping that this reduction is a beginning point for a long-term reduction period, following the current instability in pricing. At this crucial time when the Pakistani airline industry is reconstructing itself, this reduction comes at the right time.
