October 12, 2023 (MLN): On the back of declining international oil prices and the appreciation of the local currency, the government will likely slash the domestic petroleum and diesel prices by Rs36 and Rs19 per litre, respectively in the next fortnightly pricing update, effective from October 16, 2023.
The international petrol and diesel prices have recorded a fall of $10 and $8 per barrel, reaching $104 and $118 respectively.
Accordingly, the latest ex-refinery calculation for petroleum works out to be Rs206, depicting a substantial fall of Rs36 per litre.
The reduction in domestic petroleum and diesel prices is further compounded by the continuous Pakistani Rupee (PKR)'s appreciation.
The PKR has gained around 3.19% from the previous fortnight's weighed average price, currently standing at around PKR 282.62 per USD.
Incorporating the effect of a decline in international prices, coupled with the strengthening of the local currency, will result in a significant reduction in local petroleum prices.
To note, the caretaker government on September 30, slashed the petrol and HSD prices by Rs8 and Rs11 per litre to Rs323.38 and Rs318.18 per litre, respectively.
