Petrol prices likely to massive drop on March 16 – Check new rates

Crude oil prices have fallen sharply in the global market. On January 20, 2024, the price was $82 per barrel, but in less than 50 days, it has dropped to $69.3 per barrel—a decrease of over $12. This brings oil prices back to the level of August 2021.

Impact on Petrol Prices in Pakistan

Due to this drop, people in Pakistan are hoping for a reduction in petrol prices. In August 2021, when crude oil was at a similar price, petrol in Pakistan was PKR 119 per liter. If petrol prices return to that level, it could decrease by PKR 150 per liter.

Expected Petrol Price in Pakistan

The government reviews petrol prices every 15 days. Experts predict a PKR 10 per liter decrease in the upcoming review, with a bigger reduction possible next month. The final decision will be made on March 15.

Exchange Rate and Petrol Price

In August 2021, when crude oil was at $69.75 per barrel, the dollar rate was PKR 163, and petrol was PKR 119 per liter. Now, despite crude oil being at a similar level ($69.50 per barrel), the dollar rate has increased to PKR 280, and petrol is PKR 255.63 per liter.

Due to the high exchange rate and government taxes, petrol prices in Pakistan may not drop significantly. However, a reduction is expected soon.

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