Pakistan’s interim government is poised to bring relief to the public as it is expected to announce a substantial reduction in petrol and diesel prices for the second half of January. Informed sources suggest that the caretaker setup is considering cutting petrol and diesel prices by up to Rs10 per litre in the upcoming fortnight review.
This reduction is attributed to a combination of lower international prices and the appreciation of the local currency, which enables the government to pass on the benefit to the inflation-affected populace.
Reports indicate that diesel prices are also expected to decrease by around Rs2 per litre. Global petroleum prices have witnessed a decline over the past fortnight, with petrol dropping more than a dollar from $84.50 to $83 per barrel, and diesel following a negative trajectory.
The Pakistani rupee has strengthened against the US dollar, currently hovering around Rs280 compared to approximately Rs283.50 on December 23. The reduction in the premium on petrol procurement has further contributed to the favorable conditions.
With these developments, it is anticipated that the petrol price will decrease by approximately Rs9 per litre, while diesel will see a reduction of around Rs2 per litre.
In international discussions with the International Monetary Fund (IMF), the Pakistani government has set a target to collect Rs869 billion in petroleum levy during FY 24. However, experts suggest that this figure could surpass Rs900 billion by the end of June.
At present, Pakistani consumers are paying approximately Rs82 per litre in taxes on both petrol and diesel.
Projected Petrol Prices in Pakistan from January 16:
- Petrol: Rs267.34
- High-Speed Diesel (HSD): Rs276.21
These anticipated price adjustments are expected to provide relief to consumers and alleviate the economic burden caused by rising fuel prices.
