In a positive development for consumers in Pakistan, global oil prices on the international market have experienced a significant decline, potentially leading to substantial reductions in petrol and diesel prices in the first half of December.
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On November 15, the caretaker government had already decreased the prices of petrol, diesel, kerosene oil, and light-speed diesel (LSD). However, the latest drop in international oil prices, especially in Russian crude, where the per barrel cost has fallen below $60, is contributing to this downward trend.
Brent, a key benchmark, has seen a continuous decline and currently stands at $80.58 per barrel, experiencing a one percent decrease. The European Union has set a new standard for Russian crude at $60 per barrel.
This decline in oil prices is influenced by various factors, including challenges within the Organization of the Petroleum Exporting Countries (OPEC) in reaching a consensus on supply policy. Additionally, fluctuations are seen in equities due to factors such as slowing industrial profits in China, posing potential risks to the world’s largest crude importer.
Despite challenges within OPEC and increased crude supply from non-OPEC+ nations, about half of surveyed traders and analysts anticipate additional measures to tighten the market.
The implications of this international market trend are eagerly anticipated in local markets, particularly in Pakistan. The federal government is set to announce revisions in petroleum prices on the night of November 30, with the new rates expected to take effect from December 1, 2023.
Current petrol prices in Pakistan are at Rs281.34 per litre, and high-speed diesel (HSD) is priced at Rs296 per litre. There are reports suggesting a significant reduction, possibly up to Rs20 per litre, providing considerable relief to consumers grappling with high fuel prices.
