In a welcome development for Pakistani citizens grappling with inflation, the government is poised to introduce further relief for petroleum consumers.
There is an anticipated reduction of Rs1.72 per litre in Pakistan’s petrol price in the upcoming fortnightly pricing update.
Conversely, High-Speed Diesel (HSD) in Pakistan is expected to see a modest increase of approximately Rs1 per litre, attributed to a slight uptick in international diesel rates.
If these adjustments are implemented, the new petrol price in Pakistan is projected to be Rs265.62 per litre, while diesel is expected to be priced at Rs277.21 per litre after the anticipated increase.
The expected decline in petrol price is a result of a slight downturn observed in international petroleum product prices since the last fortnight’s review.
Despite the potential reduction in Pakistan’s petrol price to below Rs2 per litre, opinions may vary. While some may view it positively, others may not consider it a significant relief, given that the petrol price in Pakistan will still exceed Rs250 per litre.
The new petroleum prices are set to take effect from January 1st, with the official announcement by the government scheduled for after 11 pm on Sunday, December 31.
These revised prices will apply nationwide, including cities such as Lahore, Islamabad, Rawalpindi, Sialkot, Gujranwala, Faisalabad, Multan, and Karachi.
As of the current pricing, petrol in Pakistan is priced at Rs267.34 per litre, and diesel is priced at Rs276.21 per litre. It’s important to note that these prices will remain in effect until the end of 2023, specifically until the night of Sunday, December 31, 2023.
In the previous fortnightly review, there was a significant relief for Pakistanis as the petrol price was reduced by Rs14 per litre, and the diesel price saw a reduction of Rs13.50 per litre.
Additionally, the Pakistani rupee (PKR) has experienced marginal appreciation against the US dollar (USD) since the last fortnight’s decision, reaching a weighted average rate of approximately PKR 283.08 per USD.
Pricing estimates until December 22 indicate a 0.49 per cent decrease in the international petrol price, settling at $94.59.
Conversely, the international diesel price stands at $101.30, reflecting an increase of $1.49 compared to the price on December 15.
It’s crucial to highlight that there is still a week left for the next pricing update, and the future trajectory of these prices will hinge on global market movements and exchange rate fluctuations.
Recalling the last fortnight, the government’s decision led to a Rs14 reduction in petrol price and a Rs13.50 reduction in diesel price.
The new prices will be officially announced at midnight on December 31, 2023, potentially through a notification from the petroleum division or the Ministry of Finance.