Pakistan has announced a significant reduction in petroleum prices for the first half of June 2023. The decision was made by Finance Minister Muhammad Ishaq Dar and will come into effect on June 1 and remain in place until June 15.
Under the new pricing structure, high-speed diesel and light diesel oil prices will be reduced by Rs5 per liter each, while petrol prices will be reduced by Rs8 per liter. The revised prices are as follows: Petrol will be priced at Rs262 per liter, high-speed diesel at Rs253 per liter, kerosene at Rs164.07 per liter (unchanged), and light diesel oil at Rs147.68 per liter.
This reduction in petroleum prices comes in response to the arrival of Russian oil and a decline in international oil prices. Experts had been anticipating a significant decrease in prices due to the downward trend in petroleum product prices on the global market. By passing on the benefits of these decreasing prices to the general public, the government aims to provide maximum relief and ease financial burdens.
The recent decline in international oil prices, coupled with the stability of the Pakistani rupee against the dollar over the past 15 days, has created favorable conditions for the government to adjust petroleum prices. Industry experts have been predicting a noteworthy reduction in petroleum prices during the first half of June 2023.
Furthermore, experts believe that the government had the potential to implement an even greater decrease of up to Rs100 in petroleum prices following the arrival of Russian oil. A vessel carrying Russian oil is scheduled to anchor at Oman Port by the end of this month, and small boats will transport the oil to the Pakistani coast during the first week of June 2023.
The reduction in petroleum prices will bring relief to consumers and various sectors of the economy, as transportation costs are expected to decrease. Additionally, industries dependent on petroleum products, such as manufacturing and agriculture, will benefit from the lower prices, which will ultimately contribute to economic growth.
It is worth noting that despite the reduction in prices, the government has kept the price of kerosene unchanged. Kerosene is widely used for cooking and lighting purposes, especially in rural areas, and maintaining its price stability aims to ensure affordable access to this essential commodity.
Overall, the decision to lower petroleum prices in Pakistan for the first half of June 2023 is expected to have a positive impact on the economy, providing relief to consumers and promoting growth in various sectors.