All eyes are at Petrol Price announcement as the federal government is set to reveal new petroleum prices amid dip in international crude oil prices.
Public expectations increased after the government opted to keep fuel prices unchanged during the previous review, despite a noticeable drop in international crude oil prices.
The decision disappointed consumers and transporters, who had anticipated immediate relief at the pumps.
Since that announcement, global oil prices have continued their downward trend. Brent crude, which was trading at around $72.6 per barrel last Friday, is now hovering between $71.8 and $72 per barrel, extending the decline.
Pakistan’s current fuel prices stand at Rs299.50 per litre for petrol and Rs311.47 per litre for high-speed diesel. When these rates were fixed, Brent crude was trading close to $77 per barrel, meaning international oil prices have fallen by roughly $5 per barrel since then.
If the government refrains from increasing the petroleum development levy, consumers could see a reduction of Rs5 to Rs15 per litre in petrol and diesel prices.
However, the exact adjustment will depend on OGRA’s pricing formula, import costs, exchange rate fluctuations, freight charges, petroleum levy, climate support levy, and other applicable taxes.
Although declining global crude oil prices reduce Pakistan’s import costs, fuel prices in the country are determined by multiple economic factors rather than crude oil prices alone.
