Expected Drop in Petroleum Product Prices

KARACHI: Sources indicate that petroleum product prices are likely to go down by more than Rs8 per litre in the upcoming fortnightly review on March 15. This adjustment is influenced by fluctuations observed in international oil rates.

Consumers may find some relief amid rising inflation as sources suggest a potential decrease of up to Rs8.27 per litre in the price of petrol. Similarly, diesel rates could be reduced by Rs7 per litre.

Additionally, kerosene oil is projected to decrease by Rs7.47 per litre, and light diesel may see a reduction of Rs7.21 per litre.

This would represent a significant decrease in petroleum product prices in Pakistan, aligning with the current downward trend in global oil rates.

In the previous month, the federal government had declared a reduction of Re1 per litre in petrol prices, effective for two weeks.

Following this adjustment, the petrol price was set at Rs254.63 per litre, a decrease from the previous Rs255.63. However, the government decided to keep the price of high-speed diesel (HSD) steady at Rs258.64 per litre.

The federal government had previously decided to keep petroleum prices steady on March 1.

Petrol is primarily used for private transportation, including small vehicles, rickshaws, and motorcycles. Fluctuations in fuel prices can significantly affect the financial stability of middle and lower-middle-class individuals, who depend on petrol for their daily commutes.

Conversely, a large part of the transport sector relies on high-speed diesel.

The price of high-speed diesel is often considered inflationary because of its widespread use in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery like tractors and threshers. The consumption of high-speed diesel significantly contributes to the rising costs of essential goods, including vegetables and various food items.