Petrol, diesel prices in Pakistan likely to see drop from May 1

A sigh of relief for inflation-hit masses as the petrol price in Pakistan is likely to see drop amid fluctuation in global oil prices.

With diesel and gasoline witnessing a dip of $4.3 and $1.86 per barrel, respectively, in the international market, domestic markets may see a decrease of Rs7.85 and Rs3.75 in their prices.

Presently, the international per barrel prices stand at $104.76 for diesel and $107.16 for petrol.

Industry experts project a downward trajectory in petroleum product prices worldwide, indicating a potential local adjustment in costs. However, amidst this hopeful outlook, the experts caution against the prevailing volatility in global prices, emphasizing the uncertainty of future trends over the next four to five days.

Notably, the government’s decision-making process regarding petroleum product prices is influenced by factors such as global oil prices, local currency valuation, expected fuel consumption, and supply costs of state-owned entities like Pakistan State Oil, alongside monthly tax targets.

Pakistan, heavily reliant on oil imports for about 85% of its needs, grapples with a conundrum of balance of payments and surging inflation. In a bid to navigate economic turbulence, the government inked a $3 billion loan agreement with the International Monetary Fund in July 2023, pledging to implement austerity measures, including tax hikes, energy cost escalations, and adoption of a market-based currency exchange rate.

Current petrol price in Pakitan

On April 15, on April 15, 2024, the government raised the price of petrol by Rs4.53 per litre, reaching Rs293.94 per litre. Similarly, high-speed diesel witnessed an increase of Rs8.14 per litre, soaring to Rs290.38 per litre.