Petroleum prices in Pakistan are anticipated to decline by Rs2 to Rs3 per liter starting November 1, driven by falling global market trends.
Recent data shows that the average global price of petrol has decreased to $76 per barrel, down from $77.5, while high-speed diesel prices have also dropped from $86.5 to $84 per barrel over the past 15 days.
This potential reduction follows a price hike earlier this month, when the government increased the price of high-speed diesel by Rs5 per liter on October 15, while keeping petrol prices unchanged.
Prior to this, the government had already reduced fuel prices on September 30, cutting petrol by Rs2 per liter and high-speed diesel by Rs3.40.
Despite these adjustments, the government imposes a significant tax burden on petroleum products. Currently, there is a petroleum development levy of Rs60 and a customs duty of Rs16 per liter, amounting to a total tax load of Rs76 per liter for both petrol and diesel. Additionally, oil companies and dealers add distribution and sales margins, which are approximately Rs17 per liter.
As the global market continues to fluctuate, the government’s pricing strategy reflects its efforts to balance local fuel prices with international trends. The upcoming reduction is likely to provide some relief to consumers, especially as the costs of living remain a concern.
With the anticipation of lower fuel prices, many hope that this change will have a positive ripple effect on transportation costs and overall economic activity in the country.
