As a reaction to the recent decline in global oil prices and the Pakistani rupee’s appreciating value relative to the US dollar, the interim administration has declared a substantial decrease in the prices of petroleum products
The most recent revision brings the price of petroleum down to Rs. 283.38 per liter, following a significant cut of Rs. 40 per liter. Similarly, the cost of high-speed diesel will now stand at Rs. 303.18 per liter after a reduction of Rs. 15 per liter.
The decrease in fuel prices can be primarily attributed to the fall in international oil prices, although it’s quite important that the situation is advancing due to the Middle East conflict. Moreover, the appreciation of the Pakistani rupee, which has strengthened by 10.6 percent or Rs. 29.5 against the US dollar since September 5, 2023, has contributed to this reduction.
During the most recent bi-weekly review of petroleum prices, the interim government implemented a price cut of Rs. 8 per liter for petrol and Rs. 11 per liter for high-speed diesel. This reduction, though welcome, came after a series of price hikes where the interim government had previously raised petrol prices by Rs. 58.43 per liter and high-speed diesel prices by Rs. 55.84 per liter over three consecutive bi-weekly reviews.