Mohsin Siddiqui (Chief Reporter)
The government is set to conduct a comprehensive review of domestic petroleum product prices on December 31, 2023, aligning with international market dynamics and the rupee-dollar exchange rate.
As per industry calculations, the ex-depot price of petrol, the nation’s predominant fuel, is expected to decrease by 0.98 rupees per liter to Rs266.36, a slight reduction from the current Rs267.34. Meanwhile, the ex-depot price of high-speed diesel (HSD), essential for transportation and agriculture, is anticipated to increase by Rs1.28 per liter to Rs277.49 from Rs276.21.
Kerosene, widely used for cooking and lighting in remote areas, is poised to witness a decrease of Rs1.22 per liter, settling at Rs189.80 compared to the existing Rs191.02 per liter. Simultaneously, light diesel oil (LDO), utilized for industrial purposes, is forecasted to rise by Rs1.77 per liter, reaching Rs166.41 from Rs164.64 per liter.
Despite the adjustments, recent reviews have shown minimal fluctuations in ex-depot prices of petroleum products. Industry experts attribute this stability to the subdued changes in global crude prices over the last fortnight, coupled with a relatively unchanged dollar rate.
Considering Pakistan’s heavy reliance on imported petroleum products, accounting for over 70% of its demand, recent data indicates a 5.76% YoY increase in the petroleum group import bill for November 2023. The bill escalated from $1.25 billion to $1.32 billion, constituting almost 30% of the total import bill for the month.
The first quarter of the fiscal year experienced a decline in consumption due to increased petroleum product prices. However, the second quarter witnessed stabilization, and in some cases, decreases in prices, leading to a surge in consumption in November 2023.
In summary, the upcoming changes in petroleum prices reflect a delicate balance between international market trends, currency values, and domestic consumption patterns. Stay informed about these developments for a comprehensive understanding of the fuel landscape in Pakistan.
