Pakistan is ready to witness a drop in fuel prices by the middle of September 2024, marking the fourth relief of its kind this year due to a decline in global oil rates. The reduction, expected to be around Rs10 per litre for petrol and diesel, brings hope for relief amid the country’s rising inflation.
This price cut is expected if the government maintains the current petroleum levy and the exchange rate stays stable. However, the government may increase the petroleum levy by Rs5 per litre to counter revenue shortfalls, which could reduce the price drop to Rs5-6 per litre.
Currently, the ex-depot rate for petrol is Rs259.1 and for diesel is Rs262.75. If the government avoids increasing the levy, petrol prices may fall to Rs255 per litre, with diesel expected to drop to around Rs258-259 per litre.
On the international front, oil prices have seen a sharp decline, with petrol prices dropping from $81 to $76 per barrel and diesel falling from $88.5 to $83 per barrel, contributing to the expected price reductions in Pakistan. This relief is seen as a potential factor in easing inflationary pressures across the country.
