ISLAMABAD: Given the recent drop in international oil prices, experts believe that the price of petrol in Pakistan should have been reduced by Rs25 per liter.
The government, however, will be unable to pass on the benefit of lower petroleum prices to the country's consumers as the rupee's downward spiral against the dollar continues unabated and the local unit has been making historic lows on a daily basis for the last few days.
The petrol price review is scheduled for July 31.
Currently, petrol costs Rs230.24 per litre and diesel costs Rs236.
The local currency had fallen to a new low against the US dollar the day before, which had continued to strengthen in the interbank market for the ninth consecutive session. The rupee closed at an all-time high of Rs236.02 in the interbank market, up from Rs232.93 a day earlier, as it fell Rs3.09, or 1.31 percent.
Since July 15, 2022, when it closed at nearly Rs211, the US dollar has gained Rs25 against the rupee.
It is important to note here that the depreciation of the currency would deprive consumers of any benefit from price reductions in petroleum products in the coming fortnight.
According to a top official of an oil company, if the average price from July 14 to July 26 is calculated, the price of petrol should have been reduced by Rs25 per litre, with some reduction in the price of diesel also possible.
According to the official, the IMF's condition may cause diesel and gasoline prices to rise in the next two weeks, as well as an increase in the petroleum levy (PL).
The international price of crude oil was around $103 per barrel, while the international price of gasoline was around $100 per barrel and diesel was around $120 per barrel.
The international price of crude oil was around $103 per barrel, while the international price of gasoline was around $100 per barrel and diesel was around $120 per barrel.
"Based on these prices, local oil prices could be reduced if the exchange rate remained stable," he said.
He stated that the final price would be determined after the government considered the exchange loss of Pakistan State Oil (PSO) for the import of crude and petroleum products.
He added that the local market's dollar shortage was also causing issues, as oil import letters of credit were now settling at more than $240 in the market.
Govt slashed petrol price
