Petrol prices expected to decline by Rs5/litre

Petrol and diesel prices are projected to decrease by up to Rs5 per litre in the forthcoming fortnightly review.

According to these sources, the per litre price of petrol is likely to drop by Rs5, while diesel could see a reduction of Rs4 per litre. However, they emphasized that the final changes in fuel prices will depend on the developments over the next two days, as the Oil and Gas Regulatory Authority (OGRA) prepares to forward its summary to the Finance Division on May 31.

The ultimate decision on the prices of petroleum products will be made after the Ministry of Finance consults with Prime Minister Shehbaz Sharif. If approved, this would mark the third consecutive reduction in fuel prices.

Earlier in May, the federal government sanctioned a significant cut of Rs15.39 per litre in the price of petrol and a reduction of Rs7.88 per litre in the price of diesel. Currently, petrol is sold at Rs273.10 per litre, while diesel is available at Rs274.08 per litre.

In Pakistan, the prices of petroleum products are adjusted every 15 days to align with global oil price trends and the rupee’s exchange rate against the dollar. Notably, the Pakistani rupee has remained stable in recent times.

With approximately 85% of Pakistan’s oil requirements being met through imports, the nation faces ongoing challenges with a balance of payments crisis and soaring inflation, which hit 17.3% year-on-year in April. The expected reduction in fuel prices could provide some relief to consumers amidst these economic pressures.