Petrol prices likely to drop

A substantial decrease in fuel prices is anticipated in Pakistan, with reductions of up to Rs10 per litre expected to take effect from February 16, 2025.

The federal government previously announced an increase in the price of petrol by Rs1 per litre, taking the rate to Rs257.13 per litre.

Kerosene may see a reduction of Rs3.50, while light diesel oil (LDO) could drop by Rs5 per litre. The price cuts follow a decline in international oil prices, with Brent crude falling by $2 per barrel over the past fortnight. Petrol prices in the global market dropped by 90 cents per barrel, while HSD decreased by around $3 per barrel. The ex-refinery costs of kerosene and LDO also declined. Additionally, the import premium on petrol fell by $1 to $7.75 per barrel.

Currently, the ex-depot price of petrol stands at Rs257.13 per litre, while HSD is priced at Rs267.95 per litre. Kerosene’s official rate is Rs174.85 per litre, though it is being sold at much higher prices between Rs300-350 per litre in some areas.

Petrol price changes directly impact middle and lower-income groups as it is widely used in private transport, motorcycles, and rickshaws. HSD is crucial for heavy transport, agriculture, and industries, making its price fluctuations a key factor in inflation. The expected reduction in fuel prices could provide some relief to consumers and businesses.