Fuel prices in Pakistan are expected to see a significant decrease of around Rs13 per litre in the upcoming fortnightly review, according to reports from industry officials.
This anticipated drop is attributed to a substantial decline in global oil prices over the past two weeks. In Pakistan, the government regularly reviews and adjusts petroleum product prices every two weeks, taking into consideration international market trends and the exchange rate of the local currency.
The upcoming review, scheduled for December 15, indicates a downward trend in prices across various petroleum products. The price of petrol is expected to decrease by Rs13.10 per litre, potentially reaching Rs268.24 per litre from the existing price of Rs281.34 per litre. Similarly, High-Speed Diesel (HSD) may experience a reduction of Rs13.66 per litre, bringing the expected price to Rs276.05 per litre, compared to the current Rs289.71 per litre.
Other petroleum products are also likely to witness price declines in the next review. Kerosene prices may decrease by Rs8.36 per litre to Rs192.80 per litre from the current Rs201.16 per litre.
Meanwhile, the price of Light Diesel Oil (LDO) is expected to drop by Rs10.23 per litre to Rs165.70 per litre, down from the current price of Rs175.93 per litre.
Industry officials highlight that the ex-refinery prices of petroleum products have been following a downward trend due to the recent fall in global oil prices.
They caution that the final price adjustments will also depend on the exchange rate, and it remains to be seen whether the government will pass on the full impact of the global price decline to domestic consumers.
In a recent review by the interim government for the first half of December, petrol prices were kept unchanged despite a reduction in the average Platts and an exchange rate adjustment for the Pakistan State Oil (PSO).
This decision raised questions about whether the government would pass on the entire benefit of the declining global prices to local consumers, as observed in the previous review.