Significant drop expected in petrol, diesel prices

ISLAMABAD: There are expectations of a substantial decrease in petroleum product prices on the global oil market, with the possibility of a $7 per barrel reduction. There is a high likelihood that this decline will be translated into a relief for the consumers in Pakistan as well.

The decline in petroleum prices is also mirrored in the Gulf market, where crude oil prices have fallen to $92 per barrel, and the global market, where they currently stand at $84 per barrel.

In line with international rates, Pakistan is estimated to see a fall of nearly Rs22 per liter on Petrol, starting from October 16. Diesel prices are also projected to decrease by more than Rs20 per liter.

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The improving Pakistan Rupee’s parity to the US Dollar also means that when converted from the dollar rate, the current price of a barrel of oil in Pakistan is approximately Rs 26,220. This is a steep decrease from Rs 29,898 per barrel recorded on September 15.

On September 30, the government has already reduced the price of petrol by Rs 8, to Rs 323.38 per liter; and price of diesel by Rs 11, to Rs 318.18 per liter.

Additionally, 23 days ago, there has been a significant influx of petroleum products into Pakistan as well. If there are no additional taxes applied, this expected reduction in petroleum prices will come as a much needed relief for the general public.