In the world of modern economies, fuel prices always cascade repercussions on living costs, so is in Pakistan. Suffice it to say, petrol price in Pakistan is intricately linked to global oil prices, and as such, it remains susceptible to the ebbs and flows observed in international market.

In a recent update, media reports swirl around translating that diesel and petrol prices in Pakistan are expected to decrease by Rs. 5-18 and Rs. 18, respectively, taking the new prices to lower than Rs. 300.

Notably, the whole episode is contingent on the caretaker government refraining from additional increases in the petroleum levy, currently clocking at Rs. 60 on petrol and Rs. 55 on HSD (High Speed Diesel).

The Reason

The reason behind the anticipated move is Pakistan Rupee strengthening against the US dollar in conjunction with $1.3 per barrel drop in the high-speed diesel in international market. Surprisingly, petrol price in global marker jacked up by Rs. $3.5 per barrel but the significant surge of Rs. 3 in PKR’s value can be the reason behind the forecasted downturn.

Taking the cue from media reports, it would be disappointing to observe, if the Kakar-led incumbent interim government took the advantage of drop in diesel prices and increase the petroleum levy on diesel to Rs. 60 to currently lying at Rs. 55.

Current Prices

On Oct 15, in a welcome move for the masses, the Pakistani government announced a substantial reduction in petrol price. The news revealed that petrol now cost Rs. 283.38/liter after a Rs. 40/liter decrease. High-speed diesel (HSD), witnessing a cut of Rs. 15/liter, now priced Rs. 303.18/liter.

Finance Division stated, “In the wake of variations in international prices of petroleum products and the improvement in the exchange rate, the Government of Pakistan has decided to revise the consumer prices of petroleum products,”.

What’s your take regarding the drop in petrol prices in Pakistan? Tell us in the comments section.