Islamabad: In the context of recent fluctuations in the global energy market, another change in the prices of petroleum products has been implemented in Pakistan, after which consumers will get the benefit of a reduction in the price per litre of both petrol and high-speed diesel.
According to the Petroleum Division, under the new prices, petrol will be available at Rs 334.18 per litre, while high-speed diesel will be available at Rs 386.83 per litre. The revised rates will be effective from July 28.
Government data shows that despite the price reduction, taxes and other levies on petrol and diesel remain a significant part. Total government collections on petrol are Rs 110 per litre, while high-speed diesel is Rs 96 per litre, which are considered a major component of the retail price.
Pakistan has witnessed unusual fluctuations in fuel prices in recent months. Both petrol and diesel reached their highest levels in early April due to tensions in the Middle East and a rise in global crude oil prices. Later, local prices also gradually declined as the global market stabilised.
The government has also recently changed the pricing mechanism. Now OGRA will determine new prices on a daily basis by reviewing crude oil in the international market, import costs, exchange rates and other relevant factors. Earlier, prices were reviewed weekly.
However, some circles associated with oil sales have expressed reservations about this new system. The All Pakistan Petroleum Dealers Association has announced a consultation on the future course of action, calling daily price determination difficult for business activities.
According to economic experts, the reduction in petrol price may provide some relief to millions of consumers, motorcyclists, rickshaw drivers and small businesses travelling in urban areas. On the other hand, the reduction in the price of high-speed diesel may help reduce operating costs in transport, agriculture, construction and industrial sectors, which may also have a positive impact on the delivery of essential goods.
Experts say that in the future, the prices of petroleum products in Pakistan will depend mainly on the global crude oil market, geopolitical situation, rupee value and government fiscal policy. If there is a significant change in prices in the international market, the effects can be transmitted to the local market more quickly under the new daily pricing system than before.
