The prices of petroleum products in Pakistan are expected to decline by Rs2.50 to Rs9 per litre starting February 15, following a decrease in global oil prices. The new rates will remain in effect for the next fortnight, ending on February 28.
According to industry sources, petrol prices are estimated to fall by Rs2-2.50 per litre, while high-speed diesel (HSD) may see a significant reduction of about Rs9 per litre. Similarly, kerosene and light diesel oil (LDO) prices are projected to drop by Rs3.45 to Rs5 per litre.
The price reduction is attributed to a decline in international oil prices, with benchmark Brent crude decreasing by $2 per barrel over the past fortnight. The average price of HSD in the global market dropped by approximately $3 per barrel, while petrol prices fell by around 90 cents per barrel. The import premium on petrol also decreased from $8.8 to $7.75 per barrel, while it remained unchanged for diesel.
Based on calculations as of February 29, the expected reductions are as follows:
- HSD: Decrease of Rs9 per litre
- Petrol: Decrease of Rs2.50 per litre
- Kerosene: Decrease of Rs3.50 per litre
- LDO: Decrease of Rs5 per litre
Currently, the ex-depot price of petrol stands at Rs257.13 per litre, while HSD is priced at Rs267.95 per litre. Kerosene is officially priced at Rs174.85 per litre but is often sold at much higher rates, ranging between Rs300-350 per litre.
Petrol is widely used in private transportation, including small cars, motorcycles, and rickshaws, directly impacting the budgets of the middle and lower-middle classes. Meanwhile, HSD plays a crucial role in the transport sector, powering heavy vehicles, trains, and agricultural machinery. Changes in HSD prices often influence inflation, affecting the cost of essential goods such as vegetables and other consumables.
If implemented, this reduction in fuel prices could provide much-needed relief to consumers, especially in the wake of rising inflation and economic challenges.
