Govt. claims big relief in petroleum prices for first half of May 2023

Govt. claims big relief in petroleum prices for first half of May 2023

The government of Pakistan on Monday claimed a big relief in petroleum prices for the first half of May 2023.

A day earlier, the government announced reduction in prices of petroleum products, except petrol, which are applicable till May 15, 2023.

READ MORE: Pakistan reduces petroleum prices effective from May 01, 2023

“Big relief for the public! The Government of Pakistan has announced a significant reduction in the prices of high-speed diesel (HSD) by Rs5 per liter, light diesel oil (LDO) by Rs10 per liter, and kerosene oil by Rs10 per liter for the next 15 days. Petrol prices remain unchanged,” according to a Tweet issued through an official account.

READ MORE: Pakistan likely to slash petroleum prices from May 01, 2023

Following are the new prices effective from April 01, 2023:

ProductOld prices till April 30, 2023New prices from May 01, 2023Increase (+)/Decrease (-)
Petrol282.00282.00 No change
High Speed Diesel (HSD)293.00288.00-5.00
Kerosene (KSO)186.07176.07-10.00
Light Diesel Oil174.68164.68-10.00

Over the past year, international oil prices have decreased significantly, while fuel prices in domestic markets have risen by more than 100 percent. The depreciation of the Pakistani rupee against the US dollar is another major factor contributing to the surge in petroleum prices in domestic markets. Experts believe that despite the recent decline in international oil prices, the government may not be able to reduce local prices due to the depreciation of the rupee and the need to generate revenue.

READ MORE: Headline inflation in Pakistan to hit historic high at 36.5% in April 2023

The government has assured the public that it is working on a scheme to provide petroleum products at subsidized rates to lower-income groups. Various suggestions are under consideration, such as using the Benazir Income Support Program (BISP) network, issuing specific subsidy cards, or generating a one-time password (OTP) for eligible citizens’ ease.

READ MORE: Pakistan’s foreign exchange reserves improve to over $10 billion: SBP

Although the expected reduction in petroleum prices for the first half of May 2023 in Pakistan will provide some relief to the general public, the government will have to consider a long-term plan to control fuel prices, considering the impact of international oil prices and exchange rates on domestic markets.

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