Islamabad, July 31, 2024 – Pakistan is poised to provide much-needed relief to consumers with an anticipated decrease in petroleum prices for the first half of August 2024.
According to estimates from oil marketing companies, petrol and high-speed diesel (HSD) prices are set to drop significantly. Effective August 1, petrol is expected to become cheaper by Rs6 per liter, while HSD is projected to see a reduction of Rs11.50 per liter. Additionally, kerosene oil and light diesel oil (LDO) are also in line for price cuts of Rs6.10 per liter and Rs5.50 per liter, respectively.
This potential price reduction is attributed to a decline in international oil prices. Over the past two weeks, the average price of petrol has decreased to $87.50 per barrel from $89.50, and HSD has dropped from $96.93 to $94 per barrel. Furthermore, a reduction in import premiums for both petrol and diesel has contributed to the possibility of lower fuel costs for consumers.
If realized, the new petrol price is expected to be Rs269.60 per liter, down from the current Rs275.60. HSD is projected to be priced at Rs272.13 per liter compared to the existing Rs283.63. Kerosene oil is likely to be available at Rs177.61 per liter instead of Rs183.71, and LDO will be sold at Rs160.75 per liter, a decrease from the current Rs166.25.
It is important to note that these are projected prices, and the final decision on fuel prices rests with the government, which will base its decision on recommendations from the Oil and Gas Regulatory Authority (OGRA).
The potential decrease in fuel prices comes as a welcome relief to the public, particularly after recent sharp increases in prices. The inflationary pressures on consumers have been intense, with the cost of living rising steadily. A reduction in fuel prices could alleviate some of the financial burdens on households and businesses, offering them a respite amid challenging economic conditions.
The reduction in petroleum prices is also expected to have a positive impact on various sectors of the economy. Transportation costs, which heavily rely on diesel and petrol, are likely to decrease, potentially lowering the prices of goods and services. This could contribute to easing inflationary pressures and boosting economic activity.
Furthermore, the anticipated price cuts may have political implications. The government’s decision to reduce petroleum prices could be viewed favorably by the public, enhancing its standing and support among the electorate. With general elections approaching, such measures are often seen as efforts to gain public favor and ensure political stability.
As the country awaits the official announcement, consumers and businesses alike remain hopeful for a substantial reduction in fuel prices. The coming days will reveal the final decision, which will undoubtedly have significant ramifications for Pakistan’s economy and the daily lives of its citizens.