Another Rs5 cut expected in petrol prices

January 13, 2024 (MLN): The government is expected to cut petrol prices by another Rs5.5 per litre for the second half of January, passing on the benefits of lower global oil prices to consumers.

Pricing estimates till January 12 show that the international petroleum prices have fallen by more than 1% since the last fortnight.

Moreover, the local currency has witnessed marginal appreciation against the USD since last fortnight's decision, standing at a weighted average rate of around PKR 281.31 per USD.

On the other hand, the price of High-Speed Diesel (HSD) is expected to witness a slight increase of Rs2 per litre due to a slight uptick in international diesel prices.

It is worth noting that there is one more session left for the next pricing update, thus the future trajectory of these prices will depend largely on the global market movements and the exchange rate.

To recall, in the last fortnight, the government maintained petrol and diesel prices at Rs267.34 and Rs276.21 per litre, respectively.

The government will announce the new prices at midnight on January 15, 2024, and they will remain in effect for the remainder of the month.

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