Karachi, May 13, 2024 – Pakistan citizens are brimming with anticipation as the government gears up to potentially unveil a significant reduction in petroleum prices, set to take effect from May 16, 2024.
Fueled by a downturn in global oil prices and a surge in oil smuggling within the nation, coupled with reduced consumption of imported petrol, speculations are rife that the government may slash petrol prices by Rs 10 to Rs 12 per liter for the ensuing 15 days. An official announcement is anticipated imminently, likely on Wednesday, May 15, 2024.
Insider sources suggest that a consensus is building to lower petroleum prices for the next fortnight, prompting petroleum dealers to exercise caution as they procure fuel from oil marketing companies.
Malik Khuda Bakhsh, a prominent figure in the petroleum and CNG sector and a member of the FPCCI’s standing committee for energy, shed light on the escalating issue of petrol smuggling plaguing the nation. Despite efforts to curb illicit trade, smuggling has surged, leading to a spike in oil imports. Concurrently, refineries find themselves grappling with an oversupply of oil, which portends a substantial drop in petrol prices per liter.
Bakhsh underscored the deleterious impact of smuggled petrol on the market, with illicit fuel comprising a staggering 60 to 70 percent of the total market share. This influx of contraband petrol has inundated local streets, hampering sales of refined petrol from refineries and forcing production halts.
The impending price reduction, if realized, is poised to offer respite to consumers grappling with soaring fuel costs, providing a much-needed reprieve amid economic uncertainty. As citizens await the official announcement, optimism pervades, buoyed by the prospect of a tangible reduction in petrol prices.
In the face of burgeoning challenges, the government’s decisive action to address petroleum pricing reflects a commitment to alleviate financial burdens on the populace and stimulate economic growth. However, the efficacy of these measures hinges on concerted efforts to combat oil smuggling and ensure a sustainable energy landscape for Pakistan’s future prosperity.