Islamabad, December 29, 2023 – As the world ushers in the New Year, Pakistan is poised to bring some relief to its citizens by potentially reducing petroleum prices for the first fortnight of 2024, starting January 1.
This anticipated move is attributed to the recent decline in international oil prices and the appreciating trend of the Pakistani Rupee (PKR) against the US Dollar.
Pakistan routinely reviews and adjusts petroleum prices on a fortnightly basis, with the next evaluation scheduled for December 31, 2023, covering the period from January 1 to 15, 2024. The government takes into account both international oil prices and the exchange rate when deciding on the pricing for the upcoming 15 days. Current data suggests that the conditions are favorable for a reduction in petroleum prices in the domestic market.
The benchmark US Brent Crude oil, a key determinant in these decisions, experienced a decline to $76.88 per barrel during trading on December 28, 2023, from $77.03 per barrel on December 15, 2023. Simultaneously, the exchange rate exhibited a positive trend, with the rupee gaining strength to reach PKR 281.91 against the dollar at the close of trading on December 28, 2023, compared to the rate of $283.26 on December 15, 2023.
This double whammy of falling international oil prices and the persistent appreciation of the rupee has prompted the government to announce significant reductions in the past two pricing revisions. In the most recent decision on December 15, 2023, the government implemented substantial cuts across various petroleum products, providing some relief to the citizens.
The revised rates announced on December 15, 2023, applicable until December 31, 2023, were as follows:
1. Petrol: Reduced by Rs 14 per liter to Rs 267.34 from Rs 281.34.
2. High-Speed Diesel (HSD): Decreased by Rs 13.50 per liter to Rs 276.21 from Rs 289.71.
3. Kerosene Oil (KSO): Trimmed by Rs 10.14 per liter to Rs 191.02 from Rs 201.16.
4. Light Diesel Oil (LDO): Cut by Rs 11.29 per liter to Rs 164.64 from Rs 175.93.
The citizens of Pakistan are eagerly awaiting the government’s decision on petroleum prices for the first fortnight of 2024. The nation has been grappling with high inflation, and any reduction in the prices of petroleum products will undoubtedly contribute to alleviating the overall cost of essential items.
As the government considers this crucial decision, it recognizes the impact it can have on the daily lives of citizens, especially in the context of prevailing economic challenges. A potential reduction in petroleum prices would not only provide immediate relief to consumers but also contribute to the government’s broader efforts to manage inflation and enhance economic stability in the country.
The upcoming fortnightly review will be closely watched by the public, businesses, and economic analysts alike, as they gauge the government’s response to the dynamic global and domestic economic landscape.
