Pakistan Government Expected to Lower Fuel Prices Soon

The federal government in Pakistan is anticipated to lower the prices of petroleum products in the upcoming weeks. Sources suggest that petrol and diesel rates could see a significant reduction, with petrol potentially decreasing by up to Rs8 per litre and diesel by up to Rs5.04 per litre. This expected price adjustment is attributed to the recent decline in global crude oil prices over the past fortnight.

If the proposed reductions are implemented, petrol prices may drop from Rs293.94 to Rs288 per litre, while diesel could decrease from Rs290.38 to Rs282.38 per litre. Additionally, kerosene oil and light diesel oil (LDO) prices are projected to be slashed by Rs8.03 and Rs5.4 per litre, respectively.

The final decision on adjusting petroleum product prices will be made by the Finance Ministry in consultation with the prime minister, following a review of the summary provided by the Oil and Gas Regulatory Authority (Ogra). The new prices have been calculated based on existing government taxes and include various margins and levies.

It is important to note that the government regularly revises fuel prices every 15 days to align with global oil price fluctuations and local currency value. Factors such as expected fuel consumption, supply costs of Pakistan State Oil, and monthly tax targets are considered when determining the prices of petroleum products in the country.

The potential reduction in petrol, diesel, kerosene oil, and LDO prices in Pakistan reflects the government's response to changes in the global oil market. If the expected price cuts are implemented, consumers can benefit from more affordable fuel options in the near future.