Major reduction in fuel prices expected

ISLAMABAD: Good news for consumers as fuel prices are expected to drop significantly for the next 15 days starting tomorrow.

According to sources, a slight decline in global oil prices and import premiums could lead to a reduction of Rs 3.5 per litre in petrol and Rs 7 per litre in high-speed diesel.

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Based on current tax rates, the estimated ex-depot price of petrol may drop by around Rs 3.5 per litre on May 15, while diesel could see a cut of up to Rs 7 per litre.

The expected drop follows a decrease of around $1.5 per barrel in global petrol prices and $3 per barrel in diesel prices over the past two weeks.

Currently, the ex-depot price of petrol stands at Rs 252.63 per litre.

The government is expected to officially announce the revised fuel prices at midnight.

Internationally oil prices eased on Tuesday from a two-week high, weighed down by concerns about rising supplies, despite earlier optimism over the pause in the US-China trade war after both countries temporarily cut tariffs.

Brent crude futures dropped 22 cents, or 0.3 per cent, to $64.74 per barrel by 0248 GMT. US West Texas Intermediate (WTI) crude fell 18 cents, or 0.3 per cent, to $61.77.

Both benchmarks closed about 1.5 per cent higher on Monday at their steepest settlements since April 28. The gains come during a turbulent time for global oil markets.

The US and China agreed to slash steep tariffs for at least 90 days, sending Wall Street stocks, the US dollar and crude prices sharply higher on Monday.