Fuel prices in Pakistan may witness a significant reduction, with expectations of a decrease by up to Rs. 10 per liter. Initial estimates suggest a potential decline of Rs. 10 per liter for High-Speed Diesel and Rs. 8 per liter for MS Petrol on November 15.
If international oil prices continue their downward trend in the coming days, local petrol and diesel prices could reach approximately Rs. 275.38 and Rs. 293.18, respectively, in the fortnightly pricing effective from November 15, 2023.
However, the advantage of lower global fuel rates may be offset by the recent depreciation of the Pakistani Rupee, which has lost Rs. 10.2 against the US dollar since October 15.
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It’s noteworthy that High-Speed Diesel (HSD) has become approximately $8-9 per barrel cheaper on average, dropping to $104 per barrel during the week, while petrol prices have decreased by $1 to $90.
To recap, between August 15 and September 15, petrol and high-speed diesel prices experienced a significant increase of Rs. 58.43 and Rs. 55.83 per liter, respectively, reaching a historic Rs. 331-333 per liter at retail until September 30. Subsequently, due to the Pakistani Rupee’s substantial recovery from below 300 to above 278, fuel and diesel rates were reduced by Rs. 52 and Rs. 26 per liter, respectively, on October 1 and 15.
As of October 31, petrol and HSD prices were maintained at Rs. 283.38 per liter and Rs. 303.18 per liter, respectively, during the last fortnightly review of petroleum prices, despite expectations of up to Rs. 18 per liter relief.
It is important to note that the Pakistani Rupee has depreciated by 3.5 percent to 287/$ compared to a fortnightly average of 277/$ on October 16, while WTI, Brent, and Arablight prices dropped by approximately 11.6 percent, 11.1 percent, and 9.6 percent, respectively.
