According to a report by The News, the prices of petroleum products in Pakistan are anticipated to witness a decline in the upcoming price review on April 30, attributed to a downward trend in international oil prices.
Global market data indicates a reduction of $4.3 per barrel for diesel and $1.86 per barrel for gasoline, resulting in an expected decrease of Rs7.85 and Rs3.75 respectively in domestic markets.
Diesel is currently priced at $104.76 per barrel internationally, while petrol stands at $107.16 per barrel. Industry experts suggest that this downward trend in global prices may translate into local reductions.
The final data for the price review will be compiled on April 29, considering price movements over the preceding fifteen days. Despite recent declines, experts caution about the ongoing volatility in global prices, making future predictions uncertain.
In the previous pricing review on April 15, 2024, the government raised petrol prices by Rs4.53 per liter, reaching Rs293.94 per liter, and high-speed diesel prices climbed to Rs290.38 per liter with an increase of Rs8.14 per liter.
Pakistan State Oil’s expected fuel consumption and supply costs, along with monthly tax targets, will influence the government’s decision on petroleum product prices.
Pakistan heavily relies on imported oil, with about 85% of its oil needs sourced from overseas. The country has been grappling with a balance of payments issue and surging inflation, prompting a $3 billion loan agreement with the International Monetary Fund in July 2023 to steer towards economic stability.
As part of the IMF agreement, the government has undertaken measures such as tax hikes, energy cost escalations, and adopting a market-based currency rate, impacting the cost of living and transportation in the country.
