Fuel prices expected to drop by up to Rs7/litre

Fuel prices in Pakistan will likely be slashed from December 1 following the drop in the international market.

The Oil and Gas Regulatory Authority (OGRA) has initiated deliberations on adjustments to the prices of petroleum products, with an anticipated announcement scheduled for Friday, December 1st.

Due to a decrease in global oil prices, it is expected that petrol price in Pakistan will witness a considerable reduction in cost in the ongoing week. Presently, the price of petrol in Pakistan is recorded at Rs281.34 per litre.

Projections indicate a potential decrease of Rs7 per litre for the price of petrol and Rs6 per litre for diesel in Pakistan.

The final determination of petroleum product prices for the upcoming 15 days is contingent upon the approval of caretaker Prime Minister Anwaar-ul-Haq Kakar, who is currently in Dubai on an official visit.

Current petrol prices in Pakistan stand at Rs281.34 per litre, while high-speed diesel (HSD) is priced at Rs296 per litre. 

Additionally, the Organization of Petroleum Exporting Countries (OPEC) faced challenges in reaching a consensus on supply policy, leading to a delay in their crucial meeting until November 30.

Despite the ongoing challenges within OPEC and the increase in crude supply from non-OPEC+ nations, approximately half of surveyed traders and analysts expect additional measures to tighten the market.

Brent's nearly 20% drop from its late September peak, influenced by heightened supply and the diminishing risk premium related to the Israel-Hamas conflict, has further contributed to the market's volatility.

The implications of the international market's downward trend are eagerly awaited in local markets, especially in Pakistan.

The federal government is poised to announce revisions in petroleum prices on the night of November 30, with the new rates slated to take effect from December 1, 2023.