Fuel prices in Pakistan are expected to see a huge decrease of up to Rs. 18 per liter, with starting estimates suggesting the per liter rates for High-Speed Diesel to fall by Rs. 5-6 and MS Petrol by Rs. 17-18 per liter on
Assuming that global prices and the strengthening Pakistani Rupee continue their positive trend over the next few days, it is expected that local prices for petrol and diesel will decrease to around Rs. 297-298 and Rs. 265-266, respectively, in the upcoming pricing update scheduled for October 31, 2023.
During the previous pricing review, the interim government had lowered the price of petrol by Rs. 40 per liter and high-speed diesel by Rs. 15.
The Pakistani Rupee’s impressive performance against the US dollar for 28 consecutive days and the reduction in international prices of high-speed diesel and motor spirit (petrol) by $1.3 to $3.5 per barrel last week are the primary reasons for this anticipated drop in fuel prices. If these expectations hold true, it would mark the third consecutive decrease in fuel rates after three consecutive increases.
To recap, between August 15 and September 15, the prices of petrol and high-speed diesel had surged by Rs. 58.43 and Rs. 55.83 per liter, respectively, reaching a record high of Rs. 331-333 per liter by the end of September. Subsequently, due to the remarkable recovery of the Pakistani Rupee from below 300 to over 278, the prices of petrol and diesel were reduced by Rs. 52 and Rs. 26 per liter, respectively, on October 1st and 15th.
Notably, the Pakistani Rupee has depreciated by 1% to 280.5 per US dollar compared to the average exchange rate of 277 per US dollar during the last pricing update. Meanwhile, the prices of WTI, Brent, and Arablight crude oils have decreased by approximately 4.3%, 3.2%, and 4.2%, respectively, in comparison to the previous week.
The calculations are based on actual costs for the first 12 days of the current pricing period and estimates for the remaining days.
