Consumers in Pakistan may get some relief at the fuel pumps as prices of petroleum products are expected to drop from August 1, according to sources familiar with the matter.
The ex-refinery price of petrol is projected to decrease by Rs9.7 per litre, while the price of high-speed diesel (HSD) is likely to fall by Rs3.73 per litre, sources said. The anticipated reduction is attributed to a decline in global crude oil prices and a drop in premium charges and customs duty.
Global factors drive down costs
According to industry sources, the international price of petrol per barrel has fallen from $75.27 to $73.19, while the premium on petrol has decreased significantly -- from $9.61 to $6.74 per barrel. Additionally, customs duty has been reduced from Rs15.33 to Rs14.29.
As a result, the ex-refinery price of petrol is expected to slide from Rs168.73 to Rs159.66, giving room for a price cut if other factors remain stable.
Currency adjustment could lead to further relief
The final prices are still being calculated, and sources indicate that exchange rate adjustments may bring further reductions. The final working will be submitted to the Ministry of Finance on July 31, after which a decision will be made.
Govt yet to finalize decision
While a price reduction is on the cards, the Ministry of Finance will make the final decision in light of revenue targets, and prime minister's approval will be required before the new prices are officially notified.
However, sources warned that if the petroleum levy is increased, it could offset the relief, and consumers may not see a significant drop in prices.
The final announcement is expected on the evening of July 31, and consumers across the country will be watching closely to see whether they will indeed benefit from the falling global oil prices.
