Anticipated Drop in Petrol and Diesel Prices Expected to Bring Relief from December 1
Pakistan anticipates a potential reduction in petrol and diesel prices from December 1, following a previous price cut by the interim government on November 15. The decline is attributed to the international market's response to Russian crude oil prices falling below $60 per barrel. Challenges within OPEC and factors like China's slowing industrial profits contribute to market volatility. The federal government is expected to announce revised petroleum prices on November 30, with speculations of a substantial reduction, offering relief to consumers facing high fuel prices.
Karobar
In a promising turn of events, Pakistan is gearing up for a potential reduction in petrol and diesel prices starting from December 1.
The interim government had previously implemented a price cut on November 15, with petrol witnessing a decrease of Rs2.04 per litre, diesel dropping by Rs6.47 per litre, kerosene oil falling by Rs6.05 per litre, and light-speed diesel (LSD) experiencing a notable decrease of Rs9.01 per litre.
The international market, particularly influenced by Russian crude oil, has undergone a substantial downturn, with the per-barrel price plummeting below $60. The European Union has established a new benchmark for Russian crude oil at $60 per barrel, and the British Brent has seen a marginal decrease, currently trading at $80.58 per barrel—a one percent reduction.
Despite the slight dip in Brent, the market value of Russian crude remains beneath the newly set benchmark. Challenges within the Organization of Petroleum Exporting Countries (OPEC) to reach a consensus on supply policy, coupled with factors like China's slowing industrial profits, have contributed to the volatility in crude oil prices.
Analysts foresee additional reductions despite hurdles within OPEC and the surge in crude supply from non-OPEC+ nations. The nearly 20% drop in Brent from its late September peak, influenced by increased supply and reduced risk associated with the Israel-Hamas conflict, has further intensified market fluctuations.
The local markets in Pakistan are keenly observing the implications of this international downward trend, especially as the federal government is poised to announce revisions in petroleum prices on the night of November 30. The updated rates are expected to be effective from December 1, 2023.
As of now, petrol prices in Pakistan stand at Rs281.34 per litre, and high-speed diesel (HSD) is priced at Rs296 per litre. Speculations are circulating that the government is contemplating a substantial reduction, possibly up to Rs20 per litre—a move that could bring significant relief to consumers grappling with the challenges of soaring fuel prices.
