Will govt slash petrol price in next fortnightly review?

Petroleum prices in Pakistan are expected to either decline or remain stable on May 1, 2025, following notable fluctuations in global oil markets over the past two weeks.

However, recent government policy changes could limit the extent of relief passed on to consumers.

Global crude benchmarks have continued their downward trend, with Brent crude falling to $66.60 per barrel and West Texas Intermediate (WTI) dropping to $62.85 per barrel. Prices are projected to fall by around 3 percent this week alone.

Traditionally, declining international oil prices have prompted reductions in domestic fuel rates. But under a new policy framework, the Pakistani government now has the authority to adjust the petroleum levy without a fixed upper limit.

Over the last two pricing cycles, the government has increased the levy for all fuel grades, raising concerns that any future global price drops may not translate into lower prices at the pump.

On April 15, authorities chose to maintain existing petrol and diesel prices—Rs. 254.63 and Rs. 258.64 per litre respectively—while simultaneously increasing the petroleum levy. This move sparked criticism for withholding relief from the public.

Unless the government opts against raising the levy again, Pakistani consumers may see minimal or no benefit from the ongoing decline in global oil prices.