Islamabad: As global crude oil prices continue their downward trajectory, expectations are mounting across Pakistan for another reduction in domestic petroleum prices.
International news agencies report a further decline of up to 4% in global markets.
West Texas Intermediate (WTI), the US crude benchmark, is currently trading at $70 per barrel, while the British benchmark, Brent crude, has slid to $73 per barrel.
This correction brings prices back to pre-war levels; prior to the conflict involving Iran, crude oil hovered around $73, though it aggressively surged past $126 per barrel during the peak of the hostilities.
Previously, tracking the international market’s decline, the Pakistani government provided significant public relief by slashing petrol prices by Rs. 74 per liter and High-Speed Diesel (HSD) by Rs. 67.30 per liter.
With another review on the horizon following last Friday’s global price drop, a nationwide debate has sparked over whether the government will pass on another major relief package to consumers.
However, economic experts caution that domestic fuel pricing is not determined solely by raw crude costs.
It incorporates a complex matrix of the petroleum levy, government taxes, import logistics, currency exchange rates, and other overheads.
Consequently, experts suggest that while a minor reduction remains likely, a massive price cut is highly improbable this time around.
