As the second half of January 2024 unfolds, the Pakistani government is prepared to disclose new petrol and diesel prices, navigating fluctuations in international markets and changes in the local currency.
Recent reports in local media indicate a potential reduction in petrol prices by up to Rs10 per liter. This adjustment is attributed to the decline in global oil prices, the strengthening of the local rupee, and a decrease in the premium on petroleum products.
As of early January, the current petrol price in Pakistan stands at Rs267.34 per liter, with diesel priced at Rs276.21 per liter. If the anticipated changes come to end, the petrol rate is expected to decrease to approximately Rs257-260 from January onwards.
International dynamics have played a significant role in these adjustments, with petroleum product prices experiencing a decline over the past two weeks. The local currency has also shown resilience against the greenback, currently hovering around Rs280.
Significantly, the premium on the procurement of petrol has witnessed a reduction, contributing to the overall decrease in fuel prices. International crude prices have seen a drop of more than a dollar, sliding from $84.50 to $83 per barrel in the last couple of weeks, while diesel prices have followed a negative trajectory.
In the context of these market changes, the Pakistani government aims to strike a balance between global trends and local economic factors. Last year, the interim government set a target to collect Rs869 billion in petroleum levy during the fiscal year 2024.
However, experts suggest that this figure could exceed Rs900 billion by the end of June.
As the government navigates the intricate landscape of international oil markets, currency valuation, and local economic considerations, the upcoming announcement of revised petrol and diesel prices will be closely watched by consumers and industry observers alike.
