Pakistan, petroleum prices are forecasted to decrease by Rs 12 per liter starting August 15. This anticipated reduction comes as a result of recent movements in global oil prices and information from industry sources. The potential price cuts are expected to provide some much-needed relief to consumers who have been grappling with rising living costs and high inflation.
According to preliminary estimates, petrol prices could see a reduction of over Rs 9 per liter. Similarly, high-speed diesel (HSD) may experience a decrease of up to Rs 8.50 per liter. In addition, kerosene oil is likely to become more affordable, with a potential price drop exceeding Rs 12 per liter.
If these reductions are finalized, the price of petrol will drop to Rs 257.43 per liter from the current Rs 269.43, effective for the next 15 days. This decrease is part of ongoing adjustments to accommodate shifts in the global oil market, and it reflects a broader trend of fluctuating fuel costs influenced by international pricing and domestic regulatory decisions.
The Oil and Gas Regulatory Authority (OGRA) is responsible for finalizing these pricing adjustments. OGRA is expected to complete its calculations and submit its recommendations to the government by August 15. The final decision on whether these price reductions will be implemented rests with Finance Minister Muhammad Aurangzeb, who will confer with Prime Minister Shehbaz Sharif before making a formal announcement.
Should the proposed price cuts receive approval, they could significantly ease the financial burden on consumers. In recent months, Pakistan has faced steep increases in the cost of living, partly driven by volatile petroleum prices. Lower fuel costs are anticipated to mitigate some of these pressures, potentially reducing transportation expenses and influencing the overall cost of goods and services.
It is worth noting that in the Federal Budget for Fiscal Year 2025, the government had raised the limit on the Petroleum Levy from PKR 60 to PKR 70 per liter. Despite this increase, the levy has remained fixed at PKR 60 per liter to date. If the government decides to adjust the levy by increasing it by PKR 5 per liter, the expected reductions in diesel and petrol prices would be limited. Specifically, the price drops for diesel and petrol would be constrained to approximately PKR 4 per liter and PKR 5 per liter, respectively.
This levy adjustment could influence the extent of the relief that consumers might experience. The Petroleum Levy is a significant factor in the pricing of fuel, and any changes to it could affect the overall reduction in fuel prices. Therefore, while the anticipated price cuts are promising, the final impact on consumers will depend on the government’s decisions regarding the levy.
Following the submission of OGRA’s report, further announcements are expected. These will provide clarity on the final pricing structure and confirm whether the anticipated reductions will be realized. Consumers are advised to stay informed about the developments as they unfold, as the final decisions will directly impact their daily expenses and overall cost of living.
The potential decrease in petroleum prices represents a key moment for both the government and consumers. With high inflation affecting various sectors, including transportation and goods, any reduction in fuel costs could have a ripple effect on the broader economy. As such, the upcoming adjustments are closely watched by industry stakeholders and the general public alike.
