Fuel consumers in Pakistan may receive significant relief on Friday as the government is expected to announce a sharp reduction in petroleum prices, with estimates suggesting a cut of up to Rs. 20 per litre for petrol and as much as Rs. 35 per litre for high-speed diesel.
Recent market indicators show a notable decline in ex-refinery prices. Petrol’s ex-refinery cost has fallen to around Rs. 225 per litre from Rs. 245 in the previous week, while diesel has dropped more sharply from Rs. 304 to about Rs. 269 per litre during the same period.
On the global front, crude oil prices have also eased, with petrol benchmarks declining by nearly $10 per barrel to $117, while diesel has dropped by approximately $18 per barrel to $138. This international trend has contributed to expectations of domestic price relief.
Despite the recent downward movement, fuel prices remain higher compared to pre-war levels in global markets. Analysts note that petrol is still about 27 percent higher than earlier benchmarks, while diesel remains nearly 49 percent above its previous baseline, indicating ongoing volatility in energy markets.
In Pakistan, the final decision on fuel prices will depend on government approval, as the petroleum levy remains a key factor. Currently, the levy stands at Rs. 106 per litre on petrol and Rs. 53 per litre on diesel, which significantly influences retail pricing.
Any reduction in fuel prices is expected to provide relief to transportation and agriculture sectors, potentially easing inflationary pressure. However, global geopolitical tensions continue to pose risks, which could quickly reverse the downward trend in oil prices.
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