In a positive development, Pakistan may decrease petrol and diesel prices from December 1.
The caretaker government had already reduced the prices on November 15, with petrol down by Rs2.04 per litre, diesel by Rs6.47 per litre, kerosene oil by Rs6.05 per litre, and light-speed diesel (LSD) by Rs9.01 per litre.
The international market, particularly Russian crude oil, has witnessed a considerable downturn, with the per-barrel price falling below $60. The European Union has set a new standard for Russian crude oil at $60 per barrel, and the British Brent has experienced a one percent decrease, currently trading at $80.58 per barrel.
Despite the minor decline in Brent, the market value of Russian crude remains lower than the newly established benchmark. Challenges within the Organization of Petroleum Exporting Countries (OPEC) to reach a consensus on supply policy, along with factors such as China’s slowing industrial profits, have contributed to fluctuations in crude oil prices.
Analysts predict further reductions despite challenges within OPEC and increased crude supply from non-OPEC+ nations. Brent’s nearly 20% drop from its late September peak, influenced by heightened supply and reduced risk related to the Israel-Hamas conflict, has added to market volatility.
The implications of the international market’s downward trend are eagerly awaited in local markets, especially in Pakistan. The federal government is expected to announce revisions in petroleum prices on the night of November 30, with the new rates taking effect from December 1, 2023.
Current petrol prices in Pakistan are at Rs281.34 per litre, and high-speed diesel (HSD) is priced at Rs296 per litre. There are reports suggesting that the government is contemplating a substantial reduction, possibly up to Rs20 per litre, offering significant relief to consumers facing the challenges of high fuel prices.
