In an uplifting turn of events for the residents of Pakistan, who have been grappling with severe inflation, the cost of petrol is projected to decrease starting March 1, 2024. This anticipated reduction in fuel prices, including both petrol and diesel, is expected to offer some respite to the citizens during the first two weeks of March.
Insiders with knowledge of the matter have indicated that this price drop is likely due to a significant decline in global oil prices. This trend is poised to provide a much-needed break for consumers in Pakistan, thanks to the falling prices of petroleum products on the global stage and the advent of a newly formed government.
It’s forecasted that the prices for a range of petroleum products, such as petrol and high-speed diesel (HSD), could see a reduction ranging from Rs7 to Rs10 per liter from the onset of March for the subsequent fortnight.
The current administration has yet to finalize any adjustments to fuel prices, with the conclusive decision expected to be announced on the evening of February 29. The forthcoming period, starting March 1, 2024, is anticipated to witness a decrease in petrol prices by nearly Rs7 per liter.
Petrol Price in Pakistan
| Petroleum Products | Current Pricing (PKR) | Forecasted Pricing (PKR) |
|---|---|---|
| Petrol | 275.62 | 268.70 |
| Diesel | 287.33 | 279.50 |
As of February 26, there was a notable reduction in Brent crude, which dropped to $81.27 a barrel, and U.S. West Texas Intermediate crude futures (WTI) experienced a 0.5% decrease to $76.14 a barrel.
This downward trend in oil prices commenced last week, primarily influenced by the strengthening U.S. dollar. The market’s outlook has shifted, with heightened expectations for sustained interest rates enhancing the dollar’s value, subsequently impacting commodity prices.
Since November of the previous year, oil prices have oscillated between $70-$90 a barrel. This volatility is attributed to several factors, including increased supply from the U.S., fluctuating demand forecasts in Beijing, continuous supply adjustments by OPEC+, and geopolitical uncertainties.
In mid-February, prior to this hopeful decrease, the outgoing government enacted another rise in fuel costs, with petrol prices climbing by Rs2.71 per liter and high-speed diesel (HSD) by Rs8.73 per liter. This forthcoming price reduction is eagerly awaited by many as a sign of economic relief