Pakistan is gearing up for a potential adjustment in petroleum prices slated for today, March 15, 2024, which will determine the pricing for the upcoming fortnight starting March 16.
Speculations abound regarding the course the federal government might take, with experts suggesting that ex-depot prices of petroleum products could remain unchanged during this period, citing the onset of the holy month of Ramadan as a stabilizing factor.
Market analysts foresee slight fluctuations across all four petroleum products, influenced by factors such as a notable premium on petrol and minor shifts in global fuel prices. Notably, the international price of Brent crude has maintained relative stability at around $81 per barrel since the beginning of March 2024.
Estimates provided by oil marketing companies (OMCs), accounting for prevailing government taxes, indicate an Inland Freight Equalization Margin (IFEM) of Rs7.01 per liter for petrol and Rs3.76 per liter for High-Speed Diesel (HSD).
The anticipated increase in petrol prices is expected to be approximately Rs1.07 per liter, primarily driven by a heightened premium of $12.15 per barrel compared to the previous fortnight’s $10.48 per barrel, representing a $1.6 per barrel increase. If implemented, this adjustment would see petrol prices rise from the current Rs279.75 to Rs280.82 per liter.
Conversely, marginal decreases are projected for other petroleum products. High-Speed Diesel (HSD) is estimated to witness a reduction of 82 paisa, bringing the price down from Rs287.33 to Rs286.51 per liter. The premium on HSD is expected to remain unchanged at $6.50 per barrel, maintaining consistency with the preceding fortnight.
Similarly, the anticipated decrease in the price of kerosene oil is 94 paisa, with prices expected to fall from Rs190.01 to Rs189.07 per liter. Additionally, Light Diesel Oil (LDO) is forecasted to experience a decrease of Rs1.56 per liter, transitioning from Rs170.27 to Rs168.71 per liter.
These projections come against the backdrop of global market dynamics and domestic economic considerations. Pakistan, like many nations, grapples with the challenge of balancing energy affordability for its citizens with fluctuations in the global oil market.
The impending announcement of petroleum prices holds significance for various sectors of the economy, impacting transportation costs, industrial operations, and household budgets nationwide.
As Pakistan awaits the official declaration of petroleum prices for the latter half of March 2024, stakeholders remain vigilant, mindful of the potential implications for both the domestic market and the broader economic landscape.
With anticipation building, all eyes are on the imminent announcement, which is poised to shape the trajectory of the country’s energy sector in the weeks ahead.
