Mohsin Siddiqui (Chief Reporter)

As a potential Eid gift to the inflation-stricken population, the Pakistani government is expected to announce a significant reduction in fuel prices for the second half of June 2024. According to industry sources, petrol prices might be slashed by Rs9.28 per litre, bringing some much-needed relief to consumers facing high living costs.

The current tax structure and calculations made without any exchange rate adjustments also play a role in these estimates. Additionally, the Inland Freight Equalization Margin (IFEM) is Rs7.83 on petrol and Rs3.73 on HSD, which affects the final consumer prices.

The Oil and Gas Regulatory Authority (Ogra) is expected to submit its recommendations for future oil prices on June 15. Following this, the finance ministry will consult with the prime minister to finalize the new fuel prices. This structured process ensures that all economic factors are considered before making a final decision.

The proposed reductions come at a time when the Pakistani economy is grappling with high inflation rates, which have severely impacted the purchasing power of the masses. The reduction in fuel prices is seen as a strategic move to alleviate some of this pressure, providing economic relief to consumers and potentially stimulating economic activity by lowering transportation and production costs.

If approved, these price cuts are likely to be welcomed by the public, especially during the festive season of Eid. Lower fuel costs can lead to reduced transportation expenses, which can subsequently lower the prices of goods and services across the board. This could help ease the financial burden on households and small businesses alike.