Petroleum prices in Pakistan are expected either to drop or stay the same this week, following major swings in international oil markets over the past two weeks.
While a significant decrease could happen around May 1, 2025, there’s also a chance that prices might remain unchanged due to recent government policy changes that could limit public relief.
Globally, Brent crude has fallen to $66.60 per barrel and US West Texas Intermediate (WTI) to $62.85 per barrel, with crude prices expected to decline by about 3 percent this week alone.
Historically, falling global oil prices have led to domestic price reductions in Pakistan. However, the government can now freely adjust the petroleum levy, after raising it for all fuel types in the past two pricing cycles.
This new policy means the government could increase the levy even as international prices fall, offsetting any potential cuts at the pump.
On April 15, the government kept fuel prices steady for a fortnight but raised the petroleum levy instead of passing on the benefits to consumers.
Petrol is currently priced at Rs. 254.63 per litre, while high-speed diesel (HSD) is selling at Rs. 258.64 per litre.
Unless authorities hold off on further levy hikes, the public might see little to no benefit from the current drop in global oil prices.