In a move that will bring relief to consumers, petrol prices in Pakistan are expected to fall by Rs 5.9 per litre, which could come after oil prices fell in the recent global market According to price estimates around 23 August 2024, this will be the second time in a row that petrol prices will fall, bringing the price of petrol down to Rs 255.06 per litre. This potential drop in prices is due to a drop in the former refinery price of petroleum, which has fallen from Rs 176.66 per litre of the previous fortnight to around Rs 170.7 per litre.
This decline reflects the broader trend of falling oil prices in the global market, which has had a direct impact on local prices. Along with the expected drop in petrol prices, the government is also likely to cut the price of high-speed diesel (HSD) by around Rs 6 per litre. The reason for this decline is also the drop in global HSD prices, which will further reduce the burden of consumers who rely on diesel for transportation and industrial purposes.
While these projections are signaling a significant drop in fuel prices, it’s worth noting that there’s still a week to go until the next price announcement. The final prices will be announced on the night of August 31, 2024 and will depend on further fluctuations in oil prices and exchange rates in the global market. The new prices will remain in effect for the first fortnight of September.
To provide context, in the previous price announcement the government had slashed the price of petrol by Rs 8.47, bringing it to Rs 260.96 per litre. Similarly, the price of high speed diesel was reduced by Rs 6.7 to Rs 266.07 per litre.
These continued reductions in fuel prices are being welcomed by consumers as they provide some financial relief amid current economic challenges. The government’s decisions to adjust fuel prices in line with international market trends show its balance of how it balances between the need for revenue generation and the importance of keeping prices bearable to the public.