Petrol and diesel prices in Pakistan are expected to drop from November 1, offering some relief to consumers as global oil prices show a slight decline. The anticipated price reduction will mark a change after a recent October 15 increase in diesel prices, which rose by Rs5 per liter while petrol prices remained steady.
The table below outlines the expected old and new prices for petrol and high-speed diesel (HSD):
| Product | Previous Price (Per Liter) | Expected New Price (Per Liter) | Decrease |
|---|---|---|---|
| Petrol | Rs247.03 | Rs244.03 | Rs3.00 |
| High-Speed Diesel (HSD) | Rs251.29 | Rs248.99 | Rs2.30 |
Why the Prices Are Dropping
Global market conditions have led to a decrease in crude oil prices over the last two weeks. Specifically, the average price of petrol dropped by around $1.5 per barrel, bringing it down from $77.5 to $76 per barrel. Meanwhile, HSD prices saw a larger decrease of $2.5 per barrel, reducing from $86.5 to about $84 per barrel. The stable exchange rate in Pakistan has further contributed to the possible reduction in local fuel prices.
Factors Influencing Fuel Prices
The fuel prices in Pakistan are affected by several elements, including international oil prices, import premiums, and government-imposed taxes. Import premiums have remained steady, with petrol at $8.7 per barrel and HSD at $5 per barrel. The government currently levies approximately Rs76 per liter in taxes, which includes a petroleum development levy of Rs60 and Rs16 in customs duty, in addition to distribution and sale margins that amount to roughly Rs17 per liter.
Conclusion
If implemented, the new rates could bring relief to Pakistani consumers and businesses that rely on fuel. With global oil prices fluctuating, it remains to be seen how long these reduced rates will last. Keep an eye on fuel prices for further adjustments in the coming months.