Petrol Prices Likely to Drop Across Pakistan – Relief Expected for Consumers**

Petrol Prices Likely to Drop Across Pakistan – Relief Expected for Consumers**  

**ISLAMABAD:** In a welcome development for inflation-weary citizens, petrol prices in Pakistan are expected to decrease in the upcoming fortnightly review, offering some respite from soaring fuel costs. According to industry insiders and government sources, the reduction could range between **Rs 8 to 12 per litre**, driven by a decline in global oil prices and a relatively stable exchange rate.  

### **Reasons Behind the Expected Price Cut**  

The anticipated drop in petrol prices is primarily attributed to two key factors:  

1. **Falling Global Oil Prices**  

   - International crude oil prices have seen a downward trend over the past two weeks due to reduced demand forecasts and easing geopolitical tensions.  

   - Brent crude, the global benchmark, has fallen below **$83 per barrel** after previously hovering near $90.  

2. **Stable Pakistani Rupee**  

   - The Pakistani rupee has remained relatively stable against the US dollar in recent weeks, trading between **277-278** in the interbank market.  

   - A stronger rupee helps lower the cost of imported fuel, reducing the overall price burden.  

### **Impact on Diesel and Other Fuels**  

Alongside petrol, **high-speed diesel (HSD)**, widely used in transport and agriculture, is also expected to see a price cut of **Rs 5-10 per litre**. This reduction will benefit farmers preparing for the upcoming wheat sowing season and logistics companies struggling with high operational costs.  

### **Government’s Role in Price Adjustment**  

The final decision rests with the **Oil and Gas Regulatory Authority (OGRA)**, which reviews fuel prices every **15 days** based on global market trends and tax policies. The government has been under pressure to reduce fuel costs to alleviate public frustration over inflation.  

- **Current Petrol Price:** Rs **273.10** per litre (as of last adjustment)  

- **Expected New Price:** Around **Rs 261-265** per litre  

### **Economic Relief for Consumers**  

A reduction in petrol prices will have a **ripple effect** on the economy:  

- **Lower transportation costs** will reduce prices of essential goods.  

- **Inflation may ease slightly**, as fuel prices directly impact the Consumer Price Index (CPI).  

- **Household budgets** will see some relief, particularly for middle- and lower-income families.  

### **Challenges Ahead**  

Despite the expected relief, challenges remain:  

- **Global oil market volatility** due to geopolitical factors (Middle East tensions, OPEC+ supply decisions).  

- **Potential IMF pressure** to maintain petroleum levies for revenue generation.  

- **Long-term energy reforms** are still needed to reduce reliance on imported fuel.  

### **Public Reaction & Market Response**  

Motorists and business owners have welcomed the news, hoping for consistent price reductions. However, some remain skeptical, citing past fluctuations where initial drops were followed by sharp increases.  

### **Conclusion**  

If the government approves the expected petrol price cut, it will be a **much-needed breather** for Pakistan’s struggling economy. However, sustainable solutions—such as boosting domestic refining capacity and exploring alternative energy—are crucial for long-term stability.  

The official announcement is expected by **June 15, 2024**, following OGRA’s review. Stay tuned for updates.  

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