Petrol Prices in Pakistan Plunge by 23.51% Over Past Year

Petrol Prices in Pakistan Plunge by 23.51% Over Past Year

Islamabad, October 4, 2024 – Pakistan has witnessed a sharp decline in petrol prices, with the cost per liter plunging by a staggering 23.51% over the past year, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday. This marked reduction comes as a welcome respite for consumers amid fluctuating global oil markets and domestic economic pressures.

The decline in petrol prices was accompanied by a notable 22.48% drop in high-speed diesel (HSD) prices during the same period, ending October 3, 2024, when compared to the prices observed on October 5, 2023. The Pakistan Bureau of Statistics report, which was part of its weekly Sensitive Price Indicator (SPI) analysis, offered a comprehensive overview of essential price movements, indicating key trends in inflationary pressures across the country.

While the reduction in fuel prices stands out as a positive development, other essential commodities have seen sharp price hikes. The year-on-year inflation trend reflected a 13.18% overall increase in the cost of essential goods. The most dramatic surge was observed in gas charges for the first quarter of 2024, skyrocketing by an astonishing 570%. Additionally, basic food items such as pulse gram (65.33%), onions (43.49%), and tomatoes (41.58%) have seen steep increases. The cost of staple goods like powdered milk (25.36%), beef (24.97%), and chicken (24.90%) also spiked, placing additional financial strain on households.

On the other hand, besides the substantial reductions in petrol and diesel prices, the Pakistan Bureau of Statistics reported that there were notable decreases in other essential items. Wheat flour saw a considerable drop of 35.67%, while powdered chilies fell by 20%. Electricity charges for the first quarter of 2024 decreased by 13.47%, providing some relief to consumers. Other commodities like sugar (12.65%), cooking oil (10.74%), and basmati rice (10.34%) also witnessed price reductions, further mitigating the impact of inflation for some consumers.

For the week ending on October 3, 2024, the SPI indicated a marginal increase of 0.44% in overall prices. This was largely driven by the significant surge in the prices of tomatoes (18.51%), onions (5.89%), and chicken (3.72%), among others. In contrast, prices of items like eggs, sugar, diesel, and potatoes decreased slightly.

The report highlighted the mixed nature of inflation, with prices of 41.18% of the monitored items increasing, 19.61% decreasing, and 39.21% remaining stable, reflecting the complex dynamics of Pakistan’s economic landscape.