Petrol prices expected to witness significant drop on November 1

ISLAMABAD: Following a noteworthy appreciation in the rupee, there is speculation of an imminent decrease in diesel and petrol prices starting November 1, 2023.

Sources close to the matter suggest that the Oil and Gas Regulatory Authority (OGRA) has outlined an initial strategy to diminish petroleum product prices. This plan is set to be relayed to the petroleum division no later than October 31.

Based on current reports, the price of High-Speed Diesel (HSD) is set to see a potential reduction by Rs 5-6 per litre, taking it under the Rs 300 threshold. On the flip side, petrol might become lighter on the pocket by about Rs 18 per litre.

However, these reductions are contingent on any last-minute amendments to the petroleum levy by the interim government, which might also re-evaluate tax structures on petroleum goods.

Electricity tariff hike another blow for inflation-burdened public

Several analysts attribute this optimistic projection to the rupee’s commendable rally, gaining roughly Rs 3 against the US dollar in a mere fortnight. This, in tandem with a fall in the average diesel price by about $1.3 per barrel and an uptick in the petrol barrel price today by around $3.5, creates a conducive environment for the anticipated reductions. For those inquiring about when the petrol price is going down, the start of next month seems promising.

It’s noteworthy that this would mark the third instance of the caretaker government reducing fuel prices, following three consecutive hikes. From August 15 to September 15, prices of petrol and HSD had climbed by Rs 58.43 and Rs 55.83 per litre, respectively. This culminated in a record retail rate touching between Rs 331-333 per litre by September’s close. Such figures had consumers anxious, particularly given the petrol price in Pakistan in September 2023.

Providing a respite, the rates were then slashed in two phases totalling to a Rs 52 cut for petrol and Rs 26 for diesel respectively, effective from October 1.

As the world closely observes the 1 barrel petrol price in the international market today, Pakistan’s interim government’s decision will be pivotal for both the national economy and the everyday consumer.