Government Announces Significant Reduction in Petroleum Prices

In a move to provide relief to the public, the government has announced a reduction in the prices of petroleum products, ARY News reported on Sunday.

According to sources, petrol prices have been cut by Rs 10 per litre, while diesel prices have been reduced by Rs 13.6 per litre. Additionally, light diesel saw a price drop of Rs 12 per litre, and kerosene was reduced by Rs 11 to Rs 15 per litre.

The reductions come after Prime Minister Shehbaz Sharif’s approval, aiming to offer some respite to consumers amidst the ongoing economic pressures and rising inflation in the country.

The adjustments in petroleum prices follow a sharp decrease in international oil prices, which dropped by 8.5%, going from USD 79.39 per barrel on August 30, 2024, to USD 72.67 per barrel. This drop is primarily due to OPEC’s revised global oil demand forecast, leading to reduced demand and subsequent price drops.

According to Tahir Abbas, Head of Research at AHL, the lower demand forecast by OPEC has had a direct impact on global oil prices. As a country that relies heavily on oil imports, Pakistan stands to benefit from this trend, with local fuel prices adjusted every fortnight.

In recent weeks, consumers have seen a steady decline in petroleum prices. Over the last three adjustments, petrol prices have fallen by PKR 16.50 per litre, while diesel has seen a drop of PKR 20.88 per litre.

Further reductions are expected, with sources indicating that the fourth consecutive decline could bring petrol prices down by an additional PKR 13.12 per litre, and diesel prices by PKR 14.39 per litre.

This continued trend of declining fuel prices could help ease inflationary pressures and provide much-needed financial relief to citizens across the country. The new prices will likely have a positive impact on the transportation sector, benefiting both commuters and industries that rely on fuel.