Crude oil prices in the global market have dropped again, returning close to pre-war levels, but consumers in Pakistan have not received any relief in petroleum prices.
Despite the fall in international rates, petrol will remain at Rs299.50 per litre and high-speed diesel at Rs311.47 per litre next week.
Crude oil prices in the international market fell by another 4.5%. The price of US crude oil dropped to $68.65 per barrel, while Brent crude oil declined to $71.52 per barrel.
On Friday, June 26, global crude oil prices continued their downward trend and reached around $71 per barrel. However, the price of Dubai crude oil remained at $75 per barrel.
Prices return near pre-war levels
Before the attacks on Iran on February 28 this year, Brent crude oil was trading at $70.89 per barrel in the global market. At that time, US crude oil was in the range of $66 to $70 per barrel.
In Pakistan’s February 16 fortnightly revision, the government had fixed petrol at Rs258.17 per litre and high-speed diesel at Rs275.70 per litre.
The latest decline means global oil prices have fallen below or near the levels seen before the Middle East war, yet local petroleum prices remain unchanged.
Public deprived of major relief
According to the report, the government’s decision to maintain petroleum prices has deprived the public of relief of at least Rs40 to Rs44 per litre.
Even if Dubai crude oil is used as the benchmark, the price of high-speed diesel in Pakistan, including all taxes and duties, should be around Rs268.55 per litre, which is nearly Rs42 lower than the current rate.
Also Read: Govt keeps petrol, diesel prices unchanged
If the 10% additional cost of imported ready-made diesel is included, diesel prices should still have been reduced by Rs16 per litre.
Similarly, petrol, including all taxes, should be around Rs256.52 per litre, almost Rs42 lower than the existing price.
Even after including the additional cost of imported ready-made petrol, consumers could still have received relief of around Rs18 per litre, but no reduction was announced.
Govt accused of withholding benefit
The report said the government continued to keep petroleum prices high despite the drop in global oil rates.
Prime Minister Shehbaz Sharif had repeatedly promised that every penny of reduction in international oil prices would be passed on to the people. However, when global crude prices declined, the promise was not fulfilled and the public received no relief.
The report said people had hoped petrol and diesel prices would be reduced by at least Rs40 per litre, but their expectations were not met.
Minister cites past reductions
Petroleum Minister Ali Pervaiz Malik said in a social media message that the government had so far reduced diesel prices by Rs200 per litre and petrol prices by Rs155 per litre.
However, sources claimed that the latest reduction was not passed on to consumers due to pressure from oil companies. According to sources, oil companies claimed they had suffered losses of Rs104 billion because of previous relief measures.
Public demands cheaper fuel
The report said Pakistanis continue to face inflation linked to the Iran-US war and higher petroleum prices. People argue that when oil prices were increased during the conflict, they silently bore the burden in the national interest.
Now that global prices have declined, they are demanding that the benefit be passed on to consumers.
The public’s demand is that petroleum product prices should be brought down to around Rs200 per litre.
