Islamabad, December 31, 2023 – As the year draws to a close, Pakistan is poised to unveil petroleum prices for the first half of the New Year 2024 in its scheduled fortnightly revision.
The government’s announcement today will dictate the prices of key commodities such as petrol, high-speed diesel, kerosene oil, and light diesel oil, with the new rates set to be effective from January 1, 2024, for the next 15 days.
Experts are optimistic about the possibility of a reduction in petroleum prices, offering a potential respite to citizens who have been grappling with the impact of high inflation. This optimism is rooted in the recent decline in international oil prices and the appreciating trend of the Pakistani Rupee (PKR) against the US Dollar.
Pakistan adheres to a routine review and adjustment of petroleum prices every fortnight. The upcoming evaluation, scheduled for December 31, 2023, will cover the period from January 1 to 15, 2024. The government considers both international oil prices and the exchange rate in determining the pricing for the upcoming 15 days, and current indicators suggest favorable conditions for a reduction in domestic petroleum prices.
The benchmark US Brent Crude oil, a key factor in these decisions, experienced a slight decline to $76.88 per barrel during trading on December 28, 2023, from $77.03 per barrel on December 15, 2023. Concurrently, the exchange rate showed a positive trend, with the rupee strengthening 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 convergence of falling international oil prices and the persistent appreciation of the rupee has influenced the government’s decisions 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 much-needed relief to 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.
As the citizens of Pakistan eagerly await the government’s decision on petroleum prices for the first fortnight of 2024, the nation’s ongoing battle with high inflation intensifies. A reduction in the prices of petroleum products would undoubtedly contribute to alleviating the overall cost of essential items for the populace.
Recognizing the far-reaching impact of this decision, especially in the context of prevailing economic challenges, the government aims not only to provide immediate relief to consumers but also to contribute to broader efforts aimed at managing inflation and enhancing economic stability in the country.
The upcoming fortnightly review will be closely monitored by the public, businesses, and economic analysts alike. As they gauge the government’s response to the dynamic global and domestic economic landscape, the anticipation for relief grows among the citizens of Pakistan.
