In the face of soaring inflation, Pakistan’s citizens may soon breathe a sigh of relief. The fluctuating global oil market hints at a potential decrease in domestic petrol prices.
The international market has seen a reduction in diesel and gasoline prices by $4.3 and $1.86 per barrel, respectively. This dip could translate into a drop of Rs 7.85 and Rs 3.75 in local diesel and petrol prices. Currently, the global per barrel prices hover at $104.76 for diesel and $107.16 for petrol.
Analysts in the petroleum industry foresee a downward trend in global petroleum product prices, suggesting a possible adjustment in local costs. However, they also warn of the ongoing volatility in global prices, casting a shadow of uncertainty over the next four to five days.
The government’s pricing strategy for petroleum products hinges on several factors. These include global oil prices, the value of the local currency, anticipated fuel consumption, and the operational costs of state-owned entities like Pakistan State Oil. Monthly tax targets also play a crucial role.
Pakistan, which depends on oil imports for approximately 85% of its requirements, is caught in a dilemma of balance of payments and escalating inflation. To steer through these economic challenges, the government secured a $3 billion loan from the International Monetary Fund in July 2023. This agreement necessitates the implementation of austerity measures, such as tax increases, rising energy costs, and the introduction of a market-based currency exchange rate.
Petrol Price in Pakistan April 2024 Update
As of April 15, 2024, the government had increased the petrol price by Rs 4.53 per liter, bringing it to Rs 293.94 per liter. High-speed diesel also saw a hike of Rs 8.14 per liter, climbing to Rs 290.38 per liter. However, the anticipated global price drop could soon change these figures.
