ISLAMABAD: Consumers in Pakistan can expect a significant reduction in petrol and diesel prices, bringing “big relief” as global oil prices decline.

According to the sources, the government plans to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 per litre on May 16 as part of the fortnightly revision.

Last month, the government already reduced petrol and high-speed diesel prices by Rs 5.45 and Rs 8.42 per litre, respectively. Currently, petrol is priced at Rs 288.49 per liter, and high-speed diesel stands at Rs 281.96 per litre.

The decline in oil prices globally is contributing to these anticipated reductions. Brent crude futures dropped to $82.54 per barrel, while U.S. West Texas Intermediate crude futures reached $78.07 per barrel. Weak fuel demand, coupled with concerns over interest rate cuts affecting economic growth, is influencing the downward trend in oil prices.

Analysts note that weak demand indicators, including increased U.S. gasoline and distillate inventories, are further pressuring oil prices. Refineries globally are facing challenges due to declining profits for diesel, driven by surplus supplies and sluggish economic activity.

These developments suggest a favourable outlook for consumers in Pakistan, as lower oil prices are expected to translate into reduced costs at the pump, offering relief amid economic uncertainties.

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