Govt expected to cut petrol price by over Rs10 per litre

ISLAMABAD: The Pakistani government is anticipated to provide some respite to its citizens from high inflation by reducing petrol prices by as much as Rs12 per litre for the second half of May 2024.

This potential cut comes in response to a decline in international petroleum prices.

If implemented, this reduction will be a welcome relief for daily commuters, especially those who rely on their own vehicles for transportation.

Earlier this month, the cost of petrol exceeded Rs290 per litre, causing significant strain on motorists and businesses.

According to preliminary estimates as of May 6, 2024, international petroleum product prices fell by $6.32 to $99.93 per barrel.

This drop suggests the government’s proposed reduction is feasible and could lower the petrol price to around Rs276.49 per litre, reflecting the anticipated Rs12 cut.

The likely petrol price cut follows a recent Rs5.45 reduction from the last pricing announcement, which lowered the cost of petrol to Rs288.49 per litre.

Additionally, high-speed diesel (HSD) is expected to see a similar reduction, with projections pointing to a Rs9.7 per litre decrease due to a $4.97 per barrel drop in global prices. This would further ease the burden on those dependent on diesel-powered transport.

Earlier this month, the government cut the price of high-speed diesel by Rs8.42, bringing it to Rs281.96 per litre.

This upcoming adjustment is seen as a continuation of the trend in response to international market dynamics.

Notably, the local currency has remained relatively stable against the US dollar over the past few weeks, with an exchange rate hovering around PKR 278.25 per USD.

However, it’s important to consider that the final prices could still fluctuate based on global market movements and changes in the exchange rate before the next update.

The government is set to announce the new fuel prices at midnight on May 15, 2024, and they will be in effect for the second half of May.

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