AHL anticipates a drop in gasoline prices of up to Rs. 41 per litre.
According to a trading house, oil prices are anticipated to reduce in the wake of the upcoming statement due to a large drop in global oil prices and an increase in the value of the Pakistani rupee relative to the US dollar.
Karobar
The local price of gasoline and diesel is anticipated to decrease by Rs41 per litre and Rs19 per litre, respectively, in the upcoming fortnightly prices starting on October 16, 2023, according to a note released on Friday by Arif Habib Limited (AHL).
AHL cited a number of developments as factors in its estimate.
International oil prices, according to the report, have fallen dramatically over the past week due to concerns about demand, a stronger dollar, inflationary pressure, and rising supplies.
WTI, Brent, and Arab Light prices all decreased by 9% to 11% from their previous fortnightly average prices.
"International gasoline (MS) fell 15% to $84.3 per barrel from the previous fortnight's average of $99.3 per barrel. In a similar vein, the price of High-Speed Diesel (HSD) on the international market dropped by 10% to $110.6/bbl from the previous weekly average of $122.3/bbl, according to AHL.
The Pakistani rupee has increased 2.7% to 283.87 against the US dollar, compared to the previous fortnightly average of 291.65, along with a fall in global oil prices.
"The local petrol and diesel prices are expected to go down by Rs41 per litre and Rs19 per litre in the next fortnightly prices effective from 16-Oct-2023," it stated. "Incorporating the above-mentioned prices alongside Pakistani rupee appreciation and assuming the international prices and currency remain at the same level for the next 10 days."
The brokerage firm reported that the recent fortnightly prices of MS and HSD had exchange rate adjustments of Rs11.9 per litre and a negative Rs2.8 per litre, respectively.
In the following fortnightly prices, "Even assuming the same currency adjustment for MS and nil on HSD, the MS and HSD are expected to drop by Rs28.6 per litre and Rs19.3 per litre," according to AHL.
AHL reduced its projections for October's CPI inflation to 27.5% on the inflation front.
The caretaker administration announced a price cut for MS and HSD of Rs. 8 per litre and Rs. 11 per litre, respectively, last week.
With effect from October 1, the new price for gasoline and diesel was 323.38 and 318.18 per litre, respectively.
