LAHORE (Daily Point) – On October 31, 2023, Pakistani citizens could witness a substantial reduction in fuel prices, with early projections indicating a potential decline of up to Rs18 per liter.
According to the reports, preliminary estimates suggest that the cost of High-Speed Diesel (HSD) may decrease by Rs5-6 per liter, while MS Petrol could see a remarkable drop of Rs17-18 per liter.
This prospective reduction is contingent upon favorable conditions in the international fuel market and the continued strength of the Pakistani Rupee. If these factors align in the next few days, local prices for petrol and diesel may plummet to around Rs297-298 and Rs265-266 per liter, respectively, in the forthcoming fortnightly pricing adjustments, effective from October 31, 2023.
In the previous fortnightly review of petroleum prices, the interim government took action to lower the price of petrol by Rs40 per liter and high-speed diesel by Rs15 per liter.
Several factors contribute to the anticipated decrease in fuel prices, including the Pakistani Rupee’s impressive 28-day performance against the US dollar and the recent decline in international rates for HSD and MS, which dropped by $1.3-3.5 per barrel last week. If this projection holds true, it would mark the third consecutive reduction in fuel prices following three consecutive hikes.
To put this into perspective, between August 15 and September 15, petrol and high-speed diesel prices surged by Rs58.43 and Rs55.83 per liter, respectively, reaching an all-time high of Rs331-333 per liter by the end of September. Subsequently, due to the significant recovery of the Pakistani Rupee from below 300 to above 278, fuel and diesel rates were slashed by Rs52 and Rs26 per liter, respectively, on the 1st and 15th of October.
It’s worth noting that the Pakistani Rupee has experienced a 1 percent depreciation, now standing at 280.5/$ compared to the previous fortnightly average of 277/$. Additionally, the prices of WTI, Brent, and Arablight have dropped by approximately 4.3 percent, 3.2 percent, and 4.2 percent, respectively, compared to the previous week.
The calculations for this expected price adjustment are based on actual costs during the first 12 days of the current fortnight and estimates for the remaining period.
