Pakistan is anticipated to experience a reduction in petrol and high-speed diesel (HSD) prices by approximately Rs5-6 per litre for the third consecutive fortnight, as forecasted based on recent international market trends and exchange rate fluctuations.
This potential decrease follows a drop in global oil prices, with crude oil prices falling by $2 to $2.30 per barrel over the last two weeks. Currently, the average price of crude oil on the international market is around $80.40 per barrel, down from approximately $82.50 per barrel. Similarly, the price for HSD has decreased to about $88 per barrel from $90.30.
The combination of declining international oil prices and a modest appreciation of the Pakistani rupee has contributed to the expected drop in domestic petroleum product prices. During the current fortnight, the import premium on petrol decreased by 50 cents per barrel, now at $8.50, while the premium on HSD remained steady at $5 per barrel. The Pakistani rupee has also strengthened by 25 cents against the US dollar over the past two weeks.
As of now, the ex-depot price of petrol in Pakistan stands at Rs260.96 per litre, with HSD priced at Rs266.07 per litre. In the previous price review on August 14, the government reduced petrol and HSD prices by Rs8.47 and Rs6.70 per litre, respectively.
With this upcoming adjustment, the cumulative reduction in petrol and HSD prices over the last month will reach Rs14.64 and Rs17.56 per litre, respectively. This includes earlier reductions of Rs6.17 and Rs10.86 per litre on July 31. Before these recent price cuts, there had been increases of Rs17.44 and Rs15.74 per litre during the first fortnight of July. Between May 1 and June 15, petrol and HSD prices were reduced by approximately Rs35 and Rs22 per litre, respectively.
