In an effort to ease the burden on inflation-hit citizens, Pakistan’s interim government is set to reduce petrol prices by up to Rs20 per litre for the next two weeks. This move follows the recent decline in global oil prices.
Reports from local media indicate that the drop in petrol prices will extend to Diesel, Kerosene, and other Petroleum Oil Lubricants (POLs). Millions of Pakistanis grappling with record-high prices are eagerly anticipating this change, hopeful for some respite amid the ongoing economic challenges.
The impact of petrol prices is particularly felt in major cities like Lahore, Karachi, and Islamabad, where daily commuting over considerable distances adds to living expenses. A decrease in fuel prices is poised to provide much-needed relief to the distressed masses.
Globally, concerns about sluggish economic growth, especially in China, have led to a drop in oil prices, dipping below $75 a barrel in mid-November. As of late November 2023, WTI crude is trading at $76.5 a barrel, reflecting a 7% decrease since October 29. Brent crude has also faced a 5.4% decline over the past month, currently standing at $86.35 a barrel.
With the anticipated revision in fuel prices, it is expected that petrol will cost around Rs260 in Pakistan, offering a ray of hope for those grappling with economic hardships.