Fuel prices in Pakistan likely to be reduced

ISLAMABAD: In a notable development, the global market has witnessed a further decline in crude oil prices, signaling a potential relief for consumers in Pakistan as fuel prices are poised for a decrease.

International media reports indicate that Brent crude futures experienced an 8-cent drop, settling at $77.12, while US crude oil saw a 13-cent decline, reaching $72.19 per barrel.

The ongoing descent in crude oil prices on the global stage has now brought them to their lowest point in the last five months.

CNG supply resumes

The cascading effect of this sustained decline in global oil prices raises expectations of more affordable petroleum products for consumers in Pakistan.

As the world market continues to experience this downward trend, the likelihood of fuel prices reduction and for other petroleum products within Pakistan remains on the horizon, providing potential economic relief for consumers and businesses alike.

The caretaker federal government had decided on Dec 1st to maintain the petrol price at Rs281.34 per litre for the next fortnight — till December 15.

However, the high-speed diesel (HSD) was slashed by Rs7 per litre while kerosene oil reduced by Rs3.82 per litre. The light diesel oil has also been cut by Rs4.52 per litre.

The country fixes fuel prices on a fortnightly basis after evaluating fluctuating international energy market costs and the rupee-dollar parity to transfer the impact on domestic consumers.

The government is charging zero general sales tax (GST) on all petroleum products while the rate of petroleum levy (PL) on petrol and diesel is Rs60 per litre.