In a positive turn of events, consumers in Pakistan may soon witness a decline in petroleum product prices as global dynamics align favorably.

Reports suggested that the plummeting prices of crude oil in the international market, coupled with the continuous devaluation of the dollar in the interbank market, may lead to a notable reduction in fuel costs starting January 16.

Crude oil

The global market saw a significant drop in the price of crude oil, with British Brent crude oil currently standing at $77 per barrel and the American West Texas Intermediate crude oil at $71 per barrel.

Even Russian crude oil, which had witnessed a decline to $71 per barrel, is now showing signs of a gradual increase.

The recent dip in oil prices was triggered by Saudi Arabia's decision to slash crude oil prices by over one percent, resulting in a 27-month low. Concurrently, the US dollar has been on a downward trend against the Pakistani rupee, slipping from Rs 288 to Rs 280 in the past month.

Petrol prices in Pakistan

Economic analysts predict that if both the US dollar and crude oil prices remain stable or continue to decrease until January 15, consumers in Pakistan can expect a reduction of 4 to 5 rupees per liter in petroleum product prices from January 16.

However, this potential relief may face challenges if unforeseen circumstances arise in the international market.

The final decision on these anticipated price changes rests with the Ministry of Finance, with the approval of Prime Minister Anwarul Haq Kakar and the Oil and Gas Regulatory Authority (OGRA).

A comprehensive summary will be presented to the authorities on January 16, paving the way for a decision that could bring relief to consumers grappling with rising fuel costs.

Current petrol prices

Earlier on January 1, the government has decided to keep the prices of petrol and high-speed diesel unchanged at Rs267.34 and Rs276.21, respectively.

However, it has reportedly slashed the price of kerosene oil by Rs2.19.

In a notification, the Finance Division stated that “the government of Pakistan has decided to maintain the current prices of petrol and high speed diesel for the next fortnight”.