Drop in fuel prices likely from Jan 1

ISLAMABAD: In a welcome development for the citizens of Pakistan grappling with the challenges of inflation, the government is poised to bring about a positive change in the lives of many by reducing the fuel prices from January 1, 2024.

The forthcoming fortnightly pricing update is expected to bring about a fuel prices reduction of Rs1.72 per litre in Pakistan.

However, amid this favorable news, it is important to note that High-Speed Diesel (HSD) is anticipated to witness a modest increase of approximately Rs1 per litre. This slight adjustment is attributed to a marginal uptick in international diesel rates, a factor that echoes the interconnected nature of global economic dynamics.

Should these adjustments be implemented as projected, the new petrol price in Pakistan is estimated to stand at Rs265.62 per litre from current rate of Rs267.34 per litre.

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Simultaneously, the price of diesel is expected to reach Rs277.21 per litre from Rs276.21 per litre after factoring in the anticipated increase.

The expected decline in petrol prices can be attributed to a slight downturn observed in international petroleum product prices since the last fortnight’s review. This insight underscores the intricate relationship between global market trends and local economic conditions, emphasizing the importance of monitoring both arenas for the benefit of the public.

The official announcement by the government regarding these revised prices is scheduled for after 11 pm on Sunday, December 31, setting the stage for the new petroleum prices to take effect from January 1st.

In contrast, the international diesel price is now $101.30, up $1.49 from the previous day’s price of $101.30.

It is critical to emphasize that the next pricing update is still a week away, and the future trajectory of these prices will be determined by global market movements and currency rate variations.

In the previous two weeks, the government’s move resulted in a Rs14 drop in petrol prices and a Rs13.50 fall in diesel prices.