The month of October might bring some welcome relief to Pakistani consumers as a significant reduction in fuel prices is anticipated. Officials from the Ministry of Finance suggest that a rise in the value of the Pakistani rupee against the US dollar could lead to a noticeable drop in petroleum product prices.

Expected Price Reductions

Starting from October 1st and lasting for 15 days, it is predicted that petrol prices per liter may decrease by Rs. 11.98, while diesel could become cheaper by up to Rs. 9.17. Furthermore, the price of kerosene oil is expected to drop by as much as Rs. 5.58.

The strengthening of the Pakistani rupee against the US dollar has played a pivotal role in these expected price reductions. Information Minister Murtaza Solangi attributed this positive shift to administrative measures taken by the interim government. Notably, these measures included a crackdown against hoarders, currency smugglers, and black market activities.

Solangi noted that the Pakistani rupee had gained substantially against the US dollar, with an impressive increase of Rs. 30 to 35. This recovery was a response to the crackdown on illicit activities, and the rupee’s value had reached its highest level since September 5.

Impact on Fuel Prices

While emphasizing that the interim government has no direct control over fuel prices as they are closely tied to international oil rates, Solangi expressed optimism that the reduction in petrol prices could be anticipated in the next fuel price announcement. He added that this potential price decrease could provide people with some relief, thanks to the strengthened rupee.

Highs and Lows of Fuel Prices

It’s worth recalling that in the previous fuel price review on September 16, fuel prices had reached historic highs after the caretaker government raised petrol prices by more than Rs. 26 and diesel prices by over Rs. 17 per liter. Presently, petrol is being sold at Rs. 331.1 per liter, while high-speed diesel is available at Rs. 329.19 per liter.

Rupee Recovery

Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), expressed optimism about the rupee’s potential recovery. He cited a 200% increase in foreign exchange companies’ daily earnings, and if the crackdown against hoarders and black market activities continued, he believed the dollar could potentially drop to below Rs. 250.

Bostan also revealed that the crackdown against illegal dollar trading had exposed a connection between black market operators and certain bank employees. Stashes of dollars hidden in bank lockers had been misused in coordination with corrupt banking staff, highlighting the depth of this illicit network.

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