Will petrol rates be reduced this time?

As global crude oil prices trend downward, the possibility of a reduction in petroleum product prices in Pakistan from May 1, 2025 is gaining traction.

Brent crude oil has decreased to $66.60 per barrel, and US West Texas Intermediate (WTI) crude is priced at $62.85 per barrel. This week alone, crude prices are expected to fall by about 3 percent. Historically, falling global oil prices have led to price cuts in Pakistan. However, the government’s recent changes to the petroleum levy have raised concerns. By increasing the levy in recent weeks, the government now has the ability to adjust the levy without any upper limit. This means that even if global oil prices continue to decline, the government could choose to raise the petroleum levy instead of lowering domestic fuel prices. The government maintained domestic petroleum prices but increased the petroleum levy.

As a result, petrol is priced at Rs254.63 per litre, and high-speed diesel (HSD) costs Rs258.64 per litre. If the government continues to raise the levy, the public may see little or no benefit from the global drop in oil prices. Many are concerned that the full impact of falling global prices may not be passed on to consumers due to the government’s control over the petroleum levy.