Petrol Prices are Likely to Fall Further By Rs.18 Per Liter
Pakistan is expected to see a significant reduction in the price of petrol, with a significant reduction of up to Rs 4,000.18 per liter. Initial estimates suggest that the price per liter of High-Speed Diesel (HSD) will be reduced from Rs. 5-6, while Motor Spirit (MS) Petrol is expected to see a significant reduction of Rs. 1,999. 17-18 per liter, effective October 31. These estimates are based on favorable international oil price conditions and the continued strength of the Pakistani rupee in the coming days. If these factors stabilize, petrol and diesel prices may fall by Rs 297-298 and Rs 265-266 per liter, respectively, in the next weekly price adjustment scheduled for October 31, 2023. A recent overnight fuel price review by the labor government showed a significant reduction in petrol prices by Rs 40 per liter and a reduction of Rs 15 per liter for premium diesel.
The main reason for the expected failure is twofold. First, the Pakistani rupee has been winning against the US dollar for twenty-eight days, thus contributing a lot to the good economic situation. Second, the international price of High-Speed Diesel (HSD) and Motor Spirit (MS) fell by about $1.3 to $3.5 per barrel last week. If these predictions come true, this will be the third consecutive hike in fuel prices.
Recalling the recent events, between August 15 and September 15, the price of petrol and diesel went up by Rs 58.43 and Rs 55.83 per liter, hitting the existing increase of Rs 331-333 per liter in the retail price. September 30. However, the significant rise in the Pakistani rupee from below 300 to above 278 has led to a significant reduction in petrol and diesel rates from Rs 52 to Rs. 26 per liter on October 1 and 15 respectively.
It is worth noting that the Pakistani rupee decreased by only 1 percent to 280.5 against the US dollar, compared to the average fortnight ago of 277 per US dollar. Also, international oil prices, including WTI, Brent, and Arablight, saw a decrease of about 4.3%, 3.2%, and 4.2%, respectively, in the last week.
These calculations are based on the payments made in the first 12 days of this fortnight, taking into account the estimates for the rest of the period. So, this idea is good for Pakistani consumers, with the possibility of skyrocketing fuel prices.