In recent news, it has been reported that fuel prices in Pakistan are set to experience a significant decrease, thanks to a decline in international oil prices. This anticipated drop could result in a reduction of up to Rs. 10 per liter in petrol rates, with High-Speed Diesel (HSD) expected to decrease by Rs. 10 per liter and Motor Spirit (MS) Petrol by Rs. 8 per liter, all of which is expected to take effect on November 15, 2023.
The decrease in fuel prices can be attributed to the downward trend in global oil prices. Assuming that these international prices continue to remain favorable, Pakistani consumers may soon enjoy more affordable fuel, with petrol and diesel prices expected to reach approximately Rs. 275.38 and Rs. 293.18, respectively, in the upcoming fortnightly price adjustments.
However, it’s important to note that while lower global fuel rates are a positive development for consumers, there is a factor that might offset some of the benefits. The Pakistani Rupee has experienced a significant devaluation since October 15, losing Rs. 10.2 against the US Dollar during this period.
It’s worth highlighting that the price reduction in High-Speed Diesel has been more substantial, with an average decrease of $8-9 per barrel and a drop to $104 per barrel during the week. Similarly, petrol prices have also seen a decline of $1, bringing it down to $90 per barrel.
To provide some context, between August 15 and September 15, consumers in Pakistan witnessed a significant surge in petrol and high-speed diesel prices, with rates rising by Rs. 58.43 and Rs. 55.83 per liter, respectively. This increase brought petrol and diesel prices to a historic high, reaching between Rs. 331 and Rs. 333 per liter at retail until September 30.
However, due to the Pakistani Rupee’s remarkable recovery from below 300 to above 278, the government implemented price reductions of Rs. 52 and Rs. 26 per liter for petrol and diesel, respectively, on the 1st and 15th of October.
On October 31, petrol and High-Speed Diesel prices were maintained at Rs. 283.38 per liter and Rs. 303.18 per liter, respectively, despite expectations of a more significant reduction of up to Rs. 18 per liter at the last fortnightly review of petroleum prices.