Anticipated developments in Pakistan’s fuel prices suggest a substantial decline of up to Rs. 10 per liter, projected to take effect on November 15. Preliminary estimates indicate reductions of Rs. 10 for High-Speed Diesel and Rs. 8 for MS Petrol.
If international prices maintain their positive trend, local petrol and diesel prices could reach Rs. 275.38 and Rs. 293.18 per liter, respectively.
However, the potential advantages of the global fuel rate decrease may be tempered by the depreciation of the Pakistani Rupee, experiencing a loss of Rs. 10.2 against the US Dollar since October 15.
Notably, High-Speed Diesel became approximately $8-9 cheaper per barrel, settling at $104 per barrel during the week, while petrol saw a $1 reduction to $90.
In the preceding months, from August 15 to September 15, both petrol and high-speed diesel prices had surged significantly, reaching a historic high of Rs. 331-333 per liter at retail until September 30.
Subsequent to a substantial recovery of the Pakistani Rupee from below 300 to above 278, fuel and diesel rates were slashed by Rs. 52 and Rs. 26 per liter, respectively, on October 1 and 15.
Despite expectations of a substantial relief of up to Rs. 18 per liter in the last fortnightly review on October 31, the interim government opted to maintain petrol and HSD prices at Rs. 283.38 per liter and Rs. 303.18 per liter, respectively.
Notably, the Pakistani Rupee depreciated by 3.5 percent to 287/$ compared to the fortnightly average of 277/$ on October 16, while WTI, Brent, and Arablight prices experienced declines of approximately 11.6 percent, 11.1 percent, and 9.6 percent, respectively.
