Will petrol prices go down tonight in Pakistan?

The federal government is expected to announce new petrol and diesel prices soon as international crude oil prices continue to decline.

Many people are hoping for lower fuel prices after the government kept prices unchanged in the previous review, despite a drop in global oil prices. The decision disappointed consumers and transporters who were expecting relief.

Since then, international oil prices have fallen further. Brent crude, which was trading at around $72.6 per barrel last Friday, is now selling between $71.8 and $72 per barrel.

At present, petrol is priced at Rs299.50 per litre, while high-speed diesel costs Rs311.47 per litre in Pakistan. These prices were set when Brent crude was close to $77 per barrel, meaning global oil prices have dropped by about $5 per barrel since then.

If the government does not increase the petroleum development levy, petrol and diesel prices could be reduced by Rs5 to Rs15 per litre.

However, the final decision will depend on OGRA’s pricing formula, import costs, exchange rate changes, freight charges, petroleum levy, climate support levy, and other taxes.

Although lower international oil prices reduce Pakistan’s import costs, fuel prices in the country are based on several economic factors, not just the price of crude oil.