Pakistan is poised to see a decrease in petroleum product prices, a welcome development driven by favourable global market dynamics. This expected reduction, likely to commence from January 16, is attributed to two key factors: the falling prices of crude oil in the international market and the devaluation of the US dollar in the interbank market.
British Brent crude oil is currently valued at $77 per barrel, while the American West Texas Intermediate crude oil stands at $71 per barrel. Even the Russian crude oil price, previously down to $71 per barrel, exhibits signs of a gradual uptick.
The primary catalyst for this downturn was Saudi Arabia’s decision to cut crude oil prices by over one per cent, marking a 27-month low. The US dollar has also weakened against the Pakistani rupee, dropping from Rs 288 to Rs 280 over the past month.
Prospects for Pakistani Consumers and Official Decisions
Economic analysts in Pakistan anticipate that should the US dollar and crude oil prices remain stable or continue to fall until January 15, consumers could enjoy a reduction of 4 to 5 rupees per litre in petroleum product prices starting January 16.
The final determination of these price adjustments will be made by the Ministry of Finance, following the approval of Prime Minister Anwarul Haq Kakar and the Oil and Gas Regulatory Authority (OGRA). The relevant authorities will review a detailed summary on January 15, informing their decision. This development promises to ease the burden on consumers facing escalating fuel costs.
In recent actions, the government, on January 1, opted to maintain the current petrol and high-speed diesel prices at Rs267.34 and Rs276.21, respectively. However, a reduction was implemented in the price of kerosene oil by Rs2.19. In its notification, the Finance Division confirmed the government’s decision to retain the existing petrol and high-speed diesel prices for the ensuing fortnight.