Citizens of Pakistan may soon enjoy a significant reduction in petroleum prices, with announcements expected to bring relief starting May 16th, 2024.
The fortnightly revision, slated for announcement on May 15th, holds promises of decreased prices across various fuel categories.
According to estimations, petrol prices are anticipated to drop by Rs 13.40 per litre, while high-speed diesel (HSD) could see a decline of Rs 8.19 per litre for the upcoming fortnight. These adjustments come amidst a backdrop of favorable global trends and local market dynamics.
The rising hops of citizens came after global oil prices have witnessed a notable decrease following the easing of tensions in the Middle East, notably after incidents involving Iran-Israel missile attacks and the resolution of Red Sea tensions. Reflecting this positive trend, global petrol prices have dipped by $6.32 per barrel to $99.93, contributing to the anticipated relief for consumers.
The citizens are projecting a premium of around $10.30 per barrel on petrol and $6.50 per barrel on HSD, along with an exchange rate adjustment of 12 paisa, will further influence local pricing dynamics, aligning with the global downtrend.
In addition to petrol and HSD, other fuel categories are also expected to witness reductions. Kerosene oil (KERO) prices are likely to decrease by Rs 9.49 per litre, while light diesel oil (LDO) could see a decline of Rs 6.54 per litre, providing additional respite for consumers across the board.
If approved by the government, these estimated reductions would translate into tangible savings for citizens. Petrol prices could potentially drop from Rs 288.49 to Rs 275.09 per litre, HSD from Rs 281.96 to Rs 273.77 per litre, KERO from Rs 183.34 to Rs 173.85 per litre, and LDO from Rs 170.66 to Rs 164.12 per litre.
The move comes at a crucial juncture, with the government aiming to stimulate economic activity and bolster consumption amidst challenges posed by the COVID-19 pandemic and economic uncertainties. Lower fuel prices are anticipated to stimulate sales and consumption of petroleum products, potentially reversing the recent declines observed in April 2024.
Furthermore, the government’s petroleum levy, currently set at Rs 60 per litre on both petrol and HSD, is expected to yield significant revenue, surpassing the fiscal year’s budgeted target. Projections indicate a collection of Rs 936 billion, exceeding the initial target of Rs 869 billion, providing a boost to government coffers amidst fiscal challenges.