Pakistan is likely to slash prices of petroleum products from June 16, 2024, in its forthcoming fortnightly review scheduled for Saturday, June 15, 2024.
According to reliable sources, the expected price reduction in Pakistan comes amid a substantial decline in global petroleum prices following a period of restored stability in the Middle East.
Reports suggest that the price of petrol may be reduced by Rs 9.23 per liter, while high-speed diesel (HSD) could see a decrease of Rs 4.02 per liter in Pakistan. This anticipated cut in petroleum prices is attributed to the global petroleum market’s downward trend and the fixed premiums on petrol and HSD at $9.590 per barrel and $6.50 per barrel, respectively. Additionally, the estimated prices of petroleum products have been calculated based on current government taxes with no adjustments for exchange rates.
According to estimates provided by oil marketing companies, the ex-depot petrol price is projected to drop from Rs 268.36 per liter to Rs 259.08 per liter, reflecting a reduction of Rs 9.28 per liter. Similarly, the price of HSD is likely to be reduced from Rs 270.22 per liter to Rs 266.20 per liter, offering a relief of Rs 4.02 per liter. Furthermore, significant reductions are also expected for kerosene oil (SKO) and light diesel oil (LDO), with prices predicted to decrease by Rs 2 and Rs 4.07 per liter, respectively.
These calculations are based on the last ten days of trading data for petroleum products in the international market, and the final decision is pending approval by the prime minister. The projections will be further refined in the next two days, taking into account the latest market trends and governmental assessments.
The anticipated price cuts come as a much-needed reprieve for Pakistani consumers, who have been grappling with high fuel costs. Lower petroleum prices are expected to reduce transportation costs, potentially easing inflationary pressures on essential goods and services.
The move also reflects the government’s efforts to pass on the benefits of reduced international oil prices to the public, aligning with its broader economic strategy to manage inflation and support economic growth. The reduction in fuel prices is expected to have a ripple effect, positively impacting various sectors of the economy, including transportation, logistics, and manufacturing.
As Pakistan prepares for the official announcement on June 15, consumers and businesses alike are hopeful that the expected decrease in petroleum prices will provide a substantial economic boost and improve overall financial stability in the coming weeks.