In anticipation of declining international oil prices, Pakistan’s interim government is poised to implement a substantial reduction of up to Rs20 per litre in petrol and diesel prices for the first two weeks of December 2023.
This move aims to alleviate the burden of inflation on the public, especially amidst constrained income growth. The decrease in global oil prices, dipping below $75 a barrel in mid-November, has been influenced by concerns over sluggish global economic growth, particularly in China.
As of late November 2023, WTI crude traded at $76.5 a barrel, marking a 7% decrease since October 29. Brent also experienced a 5.4% decline during the same period, trading at $86.35 a barrel on November 29.
The federal government is set to announce the final decision on fuel prices in Pakistan on November 30, with the expected reduction potentially bringing the price to approximately Rs260 per litre, contributing to inflation management efforts.
