Karachi – In a welcome development for inflation-hit Pakistanis, petrol and diesel prices are set to drop by up to Rs7.50 per litre from June 1, 2024. This anticipated decrease comes amid recent changes in global oil prices, providing much-needed relief to consumers.
Global Oil Price Trends
In recent weeks, global oil prices have seen a notable decline of around $3.25 per barrel. This reduction in the international market directly impacts local fuel prices, allowing for adjustments that benefit end-users in Pakistan.
Impact on Local Fuel Prices
Based on the latest calculations of the Inland Freight Equalisation Margin (IFEM), petrol prices in Pakistan are expected to decrease by Rs7.50 per litre. Similarly, high-speed diesel (HSD) prices are projected to drop by Rs6.25 per litre. These adjustments are significant, considering the current economic pressures faced by many Pakistanis.
What is the Inland Freight Equalisation Margin (IFEM)?
The Inland Freight Equalisation Margin is a crucial factor in determining fuel prices in Pakistan. It accounts for the transportation costs associated with distributing fuel across the country. By adjusting the IFEM, authorities can ensure that price reductions or increases are applied uniformly, reflecting changes in global oil prices.
Benefits of Reduced Fuel Prices
Economic Relief for Consumers
The anticipated drop in fuel prices will offer immediate economic relief to Pakistani consumers. With lower transportation costs, the prices of essential goods and services are expected to stabilize, reducing the overall cost of living.
Positive Impact on Inflation
High fuel prices have been a significant contributor to inflation in Pakistan. By lowering petrol and diesel rates, there is potential to ease inflationary pressures, benefiting the broader economy. Reduced transportation costs can lead to lower prices for food, goods, and other essential items.
Boost for the Transportation Sector
The transportation sector, which heavily relies on fuel, will also benefit from the price reduction. Lower fuel costs can lead to decreased operational expenses for businesses involved in logistics, public transport, and freight services. This, in turn, can result in more affordable services for consumers.
Petrol Price in Pakistan
In second half of April 2024, the price of petrol stands at Rs273.10 per litre and diesel price hovers at Rs274.08.
| POLs | Price per Litre (Rs) |
| Petrol | Rs273.10 |
| Diesel | Rs274.08 |
Expected Petrol Price in Pakistan
Petrol is expected to drop by Rs7.50 per litre while Diesel price is expected to move down around Rs4 per litre.
| Fuel Type | Expected Price |
| Petrol | Rs265 |
| High-Speed Diesel | Rs267 |
