Petrol price in Pakistan likely to drop today

ISLAMABAD: The people are expected to receive some relief in petrol prices as global commodity rates have dropped significantly by 8.5%, falling from USD 79.39 per barrel on August 30, 2024, to USD 72.67 per barrel.

This marks a significant shift in the global energy market.

The drop in prices is mainly due to the Organization of the Petroleum Exporting Countries (OPEC) revising its global oil demand forecast, leading to decreased demand and a subsequent fall in prices.

As Pakistan is an oil-importing country, it stands to benefit from this decline, with local fuel prices being adjusted every two weeks.

Over the past three adjustments, petrol prices have decreased by PKR 16.50 per litre and diesel by PKR 20.88 per litre.

A fourth consecutive price reduction is anticipated today, with petrol prices expected to drop by PKR 13.12 per litre and diesel by PKR 14.39 per litre.

The government has set a PDL target of PKR 1,281 billion for the fiscal year 2025, averaging PKR 107 billion per month. However, it has only collected an average of PKR 82 billion per month so far.

To meet this shortfall, a PKR 5 per litre increase in PDL is likely, which would limit the anticipated price cuts to PKR 8.12 per litre for petrol and PKR 9.39 per litre for diesel.

Thus, while lower oil prices reduce import costs and ease the pressure on foreign exchange reserves, they also challenge the government’s revenue collection efforts, presenting both opportunities and hurdles for Pakistan.