Islamabad, November 30, 2023 – Pakistan is gearing up to reveal the petroleum prices for the first half of December 2023 today as part of its fortnightly revision of fuel costs.
The announcement will cover the pricing period from December 1 to December 15, 2023, with analysts predicting minimal changes due to the relative stability in both the exchange rate and international oil prices during the latter half of November 2023.
In the second fortnight of November 2023, the Pakistani Rupee (PKR) demonstrated resilience, gaining PKR 2.75 against the US dollar. Closing at PKR 288.14 on November 15, 2023, the local currency strengthened to PKR 285.39 by the close of November 29, 2023. This positive trend in the exchange rate is likely to have an impact on the pricing dynamics of petroleum products.
International oil prices, another crucial factor influencing local fuel costs, remained relatively stable during the same period. The benchmark US Brent crude held steady at $82.87 per barrel on November 29, compared to $81.18 per barrel on November 15. The equilibrium in both exchange rates and global oil prices has led analysts to anticipate a measured adjustment in petroleum prices for the upcoming fortnight.
This announcement follows a significant reduction in petroleum product prices implemented by the Pakistani government from Thursday, November 16, 2023. The decision, communicated through a press statement from the finance ministry, was based on recommendations from the Oil and Gas Regulatory Authority (OGRA). The adjusted prices for the second fortnight of November 2023 were strategically aligned with evolving global oil market dynamics and aimed at alleviating financial burdens on citizens.
In adherence to these adjustments, the price of petrol experienced a decrease of Rs.2.04 per liter, bringing it down to Rs.281.34 from its prior rate of Rs.283.38. This reduction is expected to have a tangible impact on transportation costs and may contribute to alleviating inflationary pressures.
The most significant reduction was observed in the price of high-speed diesel, with a substantial decrease of Rs.6.47 per liter. This adjustment brought the cost down from Rs.303.18 to Rs.296.71 and is likely to affect sectors heavily reliant on diesel, including transportation and agriculture.
Kerosene oil prices also saw a notable reduction, decreasing by Rs.6.05 per liter to reach Rs.204.98 from the previous rate of Rs.211.03. This move is anticipated to provide relief to households relying on kerosene for lighting and cooking purposes.
Moreover, light diesel oil prices witnessed a significant cut of Rs.9.01 per liter, resulting in a new rate of Rs.180.45 compared to the previous Rs.189.46. This reduction is poised to benefit industries using light diesel oil in their manufacturing processes, potentially contributing to improved economic conditions.
As Pakistan awaits the upcoming announcement for the first half of December 2023, stakeholders are keenly observing how the evolving economic landscape will shape the future trajectory of petroleum prices and their broader implications on the nation’s economic dynamics.