Relief for the people who are affected by inflation in Pakistan due to drop in petrol prices due to drop in global oil prices.
Diesel and petrol witnessed a drop of $4.3 and $1.86 per barrel respectively, while domestic prices were likely to drop by $7.85 and $3.75 in the international market.
Currently, the international price of a barrel is $104.76 for diesel and $107.16 for petrol.
Industry experts point to a downward trajectory in global oil prices, indicating local adjustments in costs. However, amid this optimistic outlook, experts warn of volatility in world prices for the next four to five days, highlighting the uncertainty of future trends.
In particular, the government’s decision on oil prices is influenced by factors such as global oil prices, local currency exchange rates, expected fuel consumption and monthly tax targets, and the supply costs of government agencies such as Pakistan Petroleum.
Pakistan, heavily dependent on oil imports for 85% of its needs, struggles with rising balance of payments and inflation. To deal with the economic turmoil, the government signed a $3 billion loan agreement with the International Monetary Fund in July 2023 and pledged to implement austerity measures including tax increases, higher energy costs and the adoption of a market-based exchange rate.
Current Petrol Price in Pakistan
On April 15, 2024, the government raised the price of gasoline by $4.53 per liter to $293.94 per liter. Similarly, high-speed diesel rose $8.14 per liter to $290.38 per liter.
