ISLAMABAD:There is a good news for Pakistanis that the fuel prices are expected to massively decrease in Pakistan.
Petroleum product prices are expected to decrease by up to Rs 11 per liter in four days.
According to an media report, the new prices are likely to come into effect from December 16.
Sources indicate that the relevant authorities have already prepared initial calculations for the reduction.
The sources further stated that petrol may become cheaper by 36 paisa per liter, while diesel could drop by Rs 11.85 per liter.
Additionally, kerosene is expected to decrease by Rs 11.70, and light diesel by Rs 10.01 per liter.
The Oil and Gas Regulatory Authority (OGRA) will submit a summary of the proposed prices for approval on December 15.
After the Prime Minister’s approval, the Petroleum Division will issue a notification of the revised rates.
Fuel prices are influenced by a combination of global, national, and local factors.
Globally, the cost of crude oil is the primary determinant, as international market rates directly affect the price of petroleum products.
Geopolitical tensions, supply-demand imbalances, and decisions by major oil-producing countries, such as OPEC, can lead to fluctuations in crude oil prices.
Currency exchange rates also play a crucial role, as oil imports are paid in foreign currency, and any depreciation of the local currency can increase fuel costs.
Locally, government policies, taxes, duties, and regulatory levies significantly impact fuel prices.
The Oil and Gas Regulatory Authority (OGRA) periodically reviews and recommends price adjustments based on international trends, inflation, and operational costs of refineries and distribution companies.
Additionally, seasonal demand, transportation costs, and subsidies or relief measures announced by the government can either increase or reduce the retail prices of petrol, diesel, kerosene, and other petroleum products.
