ISLAMABAD ( The COW News Digital)In a welcome development for consumers, the federal government is likely to announce a significant reduction in petroleum product prices starting August 1. This follows a notable decline in global oil prices, which has led to downward adjustments in ex-refinery rates of both petrol and diesel.
According to sources cited by Express News, petrol prices could be slashed by up to Rs. 9.07 per litre, while high-speed diesel may see a reduction of Rs. 3.73 per litre. The final decision, however, will be made after the Prime Minister’s approval on July 31, and a formal notification will follow from the Ministry of Finance.
As per the breakdown, the ex-refinery price of petrol has dropped from Rs. 168.73 to Rs. 159.66 per litre, while international crude oil prices have dipped from $75.27 per barrel to $73.19. Additionally, the petroleum premium per barrel has also declined significantly — from $9.61 to $6.74.
The customs duty on petroleum products has seen a minor drop, going from Rs. 15.33 to Rs. 14.29, which further supports the expected decrease. Insiders reveal that if exchange rate adjustments are favorable, fuel prices may fall even further, offering much-needed relief to inflation-stricken citizens.
However, sources caution that any potential increase in the petroleum levy could neutralize the expected relief. The Ministry of Finance will finalize the price adjustments while considering revenue targets and fiscal needs.
The Oil and Gas Regulatory Authority (OGRA) is preparing the final working for the new prices and will send the summary to the Ministry of Finance by July 31. If approved without changes, consumers across Pakistan could see a noticeable drop in fuel costs beginning August 1.
This would be the first major price cut in recent months and could ease transport and production costs, indirectly benefitting food prices and other essentials. Amidst rising economic pressure, the move is likely to be viewed as a positive political step ahead of parliamentary sessions.
