Pakistan may slash fuel prices by Rs12 as global oil rates fall

Brent crude oil prices have seen a substantial decline in the international market over the past week, Express News reported.

As of the latest update, Brent crude is trading at $60.12 per barrel, a notable drop from $74.74 recorded on March 31. While prices briefly rose to $74.95 on April 1 and 2, they have since fallen by more than $14 per barrel.

In Pakistan, sources in the Petroleum Division indicated that this global downturn may allow for a reduction of up to Rs12 per litre in petrol and diesel prices. The current petroleum levy remains at a maximum of Rs70 per litre on both fuels.

Officials added that the decline in global oil prices has created fiscal space for the government, potentially enabling the introduction of General Sales Tax (GST) on petroleum products. The imposition of GST had been previously avoided due to high global energy prices.

The final decision on any price revisions will depend on how the government weighs revenue requirements against the goal of providing inflation relief to consumers.