Govt Reduces Petroleum Prices, Offering Relief to Consumers Amid Inflation

In a move that provides much-needed relief to consumers, the government has announced a significant reduction in petroleum product prices. According to sources, the price of petrol has been reduced by Rs 10 per litre, while diesel prices have been slashed by Rs 13.6 per litre. Light diesel and kerosene have also seen price cuts, with light diesel reduced by Rs 12 per litre and kerosene by Rs 11 to Rs 15 per litre.

These price adjustments follow the approval of revised rates by Prime Minister Shehbaz Sharif and come as a response to declining international oil prices. The reductions are expected to ease the financial burden on the public amidst soaring inflation.

The global oil market has seen a notable shift, with prices dropping by 8.5% in recent weeks. International crude oil prices fell from USD 79.39 per barrel on August 30, 2024, to USD 72.67 per barrel, marking a significant drop. This decline is largely attributed to the Organization of the Petroleum Exporting Countries (OPEC) revising its global oil demand forecast, leading to decreased demand and subsequent price reductions.

Pakistan, as an oil-importing nation, benefits directly from this downward trend. Fuel prices in the country are adjusted fortnightly, and over the last three revisions, petrol and diesel prices have dropped by Rs 16.50 per litre and Rs 20.88 per litre, respectively.

Tahir Abbas, Head of Research at AHL, highlighted that a fourth consecutive reduction in petrol prices is expected, with petrol and diesel projected to decline by an additional Rs 13.12 per litre and Rs 14.39 per litre, respectively.

These price cuts are expected to offer temporary respite to the public, although inflationary pressures continue to pose challenges for the broader economy.