Petrol Prices in Pakistan May Drop From Next Fortnight

The petrol prices in Pakistan are anticipated to undergo another reduction, potentially decreasing by as much as Rs. 10 per liter. Early projections hint at a possible reduction of Rs. 10 per litre for High-Speed Diesel and Rs. 8 per litre for MS Petrol starting from next fortnight on November 16.

If global fuel prices continue their current trend, local rates for petrol and diesel might see a decline, reaching approximately Rs. 275.38 and Rs. 293.18 per liter, respectively, effective from November 15, 2023.

While the drop in international fuel rates promises relief, the devaluation of the Pakistani Rupee by Rs. 10.2 against the US dollar since October 15 may somewhat counterbalance these gains, which may also end up keeping petrol prices in Pakistan unchanged again.

Recent statistics indicate a decrease in HSD prices by approximately $8-9 per barrel on average, down to $104 during a specific week. Similarly, petrol experienced a decline of $1, reaching $90.

Noteworthy is the notable fluctuation in fuel prices over recent months. Between August 15 and September 15, petrol and high-speed diesel prices surged significantly, hitting historic highs at Rs. 331-333 per liter at retail by the end of September.

However, a substantial recovery in the Pakistani Rupee, climbing from below 300 to over 278, prompted a reduction of Rs. 52 and Rs. 26 per liter for petrol and diesel on October 1 and 15.

The interim government’s decision on October 31 maintained the petrol and diesel prices in Pakistan at Rs. 283.38 and Rs. 303.18 per liter, respectively, despite anticipations of a potential reduction of up to Rs. 18 per liter.

Meanwhile, the Pakistani Rupee experienced a 3.5% depreciation, settling at Rs. 287 per USD compared to the Rs. 277 per USD fortnightly average on October 16, coinciding with an approximately 9.6 to 11.6% drop in WTI, Brent, and Arablight prices.

Read more: Consumers May Face Up to 18 Hours of Gas Loadshedding in Winter.

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