Pakistan on Sunday announced a reduction in prices of petroleum products for the first half of May 01, 2023, following a considerable decline in international oil prices.
Finance Minister Ishaq Dar stated that the prices of High Speed Diesel (HSD) would decrease by Rs5, while Kerosene Oil and Light Diesel Oil would see a reduction of Rs10 each. However, the price of petrol would remain unchanged. The new prices of petroleum products from May 01 to May 15, 2023, would be: Petrol Rs282 per liter; HSD Rs288 per liter; Kerosene Oil Rs176.07; and Light Diesel Rs168.68.
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Over the past year, international oil prices have decreased significantly, while fuel prices in domestic markets have risen by more than 100 percent. The depreciation of the Pakistani rupee against the US dollar is another major factor contributing to the surge in petroleum prices in domestic markets. Experts believe that despite the recent decline in international oil prices, the government may not be able to reduce local prices due to the depreciation of the rupee and the need to generate revenue.
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The government has assured the public that it is working on a scheme to provide petroleum products at subsidized rates to lower-income groups. Various suggestions are under consideration, such as using the Benazir Income Support Program (BISP) network, issuing specific subsidy cards, or generating a one-time password (OTP) for eligible citizens’ ease.
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Although the expected reduction in petroleum prices for the first half of May 2023 in Pakistan will provide some relief to the general public, the government will have to consider a long-term plan to control fuel prices, considering the impact of international oil prices and exchange rates on domestic markets.
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