Karachi: A sustained decline in global crude oil prices over the past eleven days is expected to provide relief to Pakistani consumers through a probable reduction in petroleum product prices starting August 16. This anticipated price adjustment follows a significant fall in international crude oil rates, according to recent market analysis.
Over the last eleven days, the price of U.S. crude oil has decreased by $5.71 per barrel, dropping from $69.26 to $63.48. Similarly, British Brent crude oil has fallen by $5.72 per barrel, currently trading at $65.98 compared to $71.70 earlier in the month.
In response to these shifts, market experts estimate that Pakistan’s ex-refinery diesel price could be reduced by Rs10 to Rs12 per litre. Petrol prices are also projected to decrease, though more modestly, by up to Rs 1 per litre.
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The Oil and Gas Regulatory Authority (OGRA) will finalize and submit its pricing calculations to the Ministry of Finance by August 15. Following approval by the Prime Minister, the federal government will issue an official notification to implement the new fuel rates from August 16 to August 31.
Under the existing regulatory framework, the federal government retains authority to revise petroleum prices in accordance with international market fluctuations. This mechanism was most recently exercised on July 31, when petrol prices were decreased by Rs7.54 per litre, while diesel prices saw a slight increase of Rs1.48 per litre, effective from August 1.
As per the Ministry of Finance notification, the current petrol price stands at Rs264.61 per litre, whereas diesel is priced at Rs285.83 per litre. However, consumers’ benefit from reduced petrol prices has been partially negated due to increases in petroleum levies. Since August 1, levies on petrol and diesel rose by Rs2.55 per litre, totaling Rs78.02 and Rs77.01 respectively.
Additional cost factors include a climate support levy of Rs2.50 per litre imposed on both fuels, a freight margin increase of 20 paisas on diesel, and dealer and distributor margins currently set at Rs8.64 and Rs7.87 per litre respectively.
