Petroleum product prices likely to decline from May 1

petroleum product prices likely to decline from may 1

Prices of petrol, diesel likely to drop in Pakistan’s next review on April 30, due to falling global oil prices. Diesel and petrol prices have decreased by $4.3 and $1.86 per barrel respectively in the international market. This may result in a decrease of Rs7.85 and Rs3.75 in domestic markets.

Experts predict a downward trend in petroleum prices globally, which might reflect locally. Final pricing data will be reported on April 29, considering the previous fifteen days’ price patterns. However, global prices remain volatile, making future predictions uncertain.

Petroleum product prices are going down. Every two weeks, the government checks the price of petrol. It’s anticipated that the price of petrol will decrease by Rs3.75 per litre.

The government, in its last review on April 15, 2024, raised petrol prices by Rs4.53 per litre to Rs293.94 and diesel by Rs8.14 per litre to Rs290.38. Petroleum prices are adjusted every fifteen days, considering global oil prices and local currency value. With the rupee depreciating against the dollar, currently trading around Rs278.39, the government factors in fuel consumption, supply costs, and monthly tax targets of Pakistan State Oil.

Pakistan, reliant on imports for 85% of its oil needs, faces economic challenges, prompting a $3 billion loan agreement with the IMF in July 2023. As part of the agreement, the government implemented measures like tax hikes and market-based currency rates, affecting living costs and transportation.