Expected Rs5 Cut in Petrol Prices

Anticipating the ongoing trend of falling global oil prices, the government is poised to implement a further reduction of Rs5.5 per litre in petrol prices for the latter half of January. This move aims to pass on the benefits of the dip in international oil prices directly to consumers.

Analyzing pricing estimates until January 12 reveals a noteworthy decline of over 1% in international petroleum prices during the preceding fortnight. Additionally, the local currency has experienced a slight appreciation against the USD since the last pricing decision, settling at a weighted average rate of approximately PKR 281.31 per USD.

In contrast, the price of High-Speed Diesel (HSD) is expected to see a minor increase of Rs2 per litre, attributed to a slight uptick in international diesel prices.

It's crucial to highlight that one pricing session remains before the upcoming update, making the future trajectory of these prices contingent on global market movements and exchange rate fluctuations.

Recalling the recent fortnight, the government maintained petrol and diesel prices at Rs267.34 and Rs276.21 per litre, respectively.

The unveiling of the new prices is scheduled for midnight on January 15, 2024, and these adjustments will remain effective throughout the rest of the month.