Amid the escalating inflation, a ray of hope emerges for the citizens of Pakistan. The global oil market’s fluctuations indicate a potential drop in domestic petrol prices, providing a much-needed respite.
The international market has witnessed a decrease in diesel and gasoline prices by $4.3 and $1.86 per barrel, respectively. This reduction could lead to a fall of Rs 7.85 and Rs 3.75 in the local diesel and petrol prices, respectively. Presently, the global per barrel prices stand at $104.76 for diesel and $107.16 for petrol.
Analysts’ Predictions on Expected Petrol Prices in Pakistan
Petroleum industry analysts predict a downward trend in global petroleum product prices, hinting at a possible adjustment in local costs1. However, they also caution about the ongoing volatility in global prices, creating uncertainty for the next four to five days.
The government’s pricing strategy for petroleum products depends on various factors. These include global oil prices, the value of the local currency, expected fuel consumption, and the operational costs of state-owned entities like Pakistan State Oil. Monthly tax targets also significantly influence the strategy.
Pakistan’s Economic Challenges and IMF Loan
Pakistan, which relies on oil imports for approximately 85% of its needs, is grappling with a balance of payments dilemma and rising inflation. To navigate these economic challenges, the government secured a $3 billion loan from the International Monetary Fund in July 2023. This agreement mandates the implementation of austerity measures, such as tax hikes, increased energy costs, and the introduction of a market-based currency exchange rate1.
Petrol Price in Pakistan April 2024 Update
As of April 15, 2024, the government had raised the petrol price by Rs 4.53 per liter, taking it to Rs 293.94 per liter. High-speed diesel also experienced a rise of Rs 8.14 per liter, reaching Rs 290.38 per liter. However, the expected drop in global prices could soon alter these figures, potentially lowering the expected petrol prices in Pakistan.
