ISLAMABAD – After Rs60 per litre increase last week, hope emerged for inflation-weary Pakistanis as changes in global crude oil prices may bring a reduction in petrol and high-speed diesel prices today.
Five percent dip in international oil markets created room for a possible cut of Rs5-Rs12 per litre in petroleum prices, provided global crude prices remain stable, and the government does not increase petroleum levy or other taxes. Currently, petrol is being sold at Rs335.18 per litre, while high-speed diesel stands at Rs383.46 per litre.
If the expected relief is approved, petrol prices could fall to around Rs327-Rs330 per litre, bringing the price below the Rs330 mark. Meanwhile, diesel prices could decline to approximately Rs371.46 to Rs375.46 per litre, depending on the final adjustment.
| Product | Current Price | Expected Relief | Expected Price |
|---|---|---|---|
| Petrol | Rs335.18/litre | Rs5–8 | Rs327–330 |
| High-Speed Diesel | Rs383.46/litre | Rs8–12 | Rs371.46–375 |
The possible price cut comes after international crude oil markets reversed their earlier upward trend. In recent weeks, Brent crude prices had crossed $100 per barrel amid escalating tensions between the United States and Iran, pushing up Pakistan’s import bill and forcing multiple increases in domestic fuel prices.
The situation now changed. Global crude prices have fallen below $90 per barrel as concerns over Middle East supply disruptions have eased, tensions have relatively reduced, and fears surrounding shipping through the Strait of Hormuz have declined.
The drop in international oil prices is now lowering Pakistan’s fuel import costs, creating space for a reduction in domestic petroleum prices.
Under the current pricing mechanism, Oil and Gas Regulatory Authority (OGRA) calculates fuel prices by reviewing the average international oil prices of the previous seven days along with import premium, exchange rate movement, inland freight equalization margin, dealer and oil marketing company margins, and government taxes.
Pakistanis may not receive the full benefit of falling global oil prices. The final relief will depend heavily on government decisions regarding petroleum levy and other taxes, which remain a major component of fuel prices.
Pakistan imports a significant share of its petroleum requirements, making domestic fuel prices highly sensitive to changes in global oil markets and exchange rate movements.
The final decision, however, will come only after OGRA completes its calculations and the federal government approves the next petroleum price adjustment.
