Staff Report
ISLAMABAD: The burden of inflation on the general public is expected to lighten with the anticipated reduction in oil prices by up to Rs 13.40 per litre during the latter half of May 2024.
According to sources, all petroleum products are likely to see a decrease in prices, with petrol expected to be cut by Rs 13.40 per litre, high-speed diesel (HSD) by Rs 8.19 per litre, Light Diesel Oil (LDO) by Rs 6.54 per litre, and kerosene oil by Rs 89.49 per litre.
These estimates are based on the current tax structure, implying potential prices of Rs 275.09 per litre for petrol, Rs 273.77 per litre for HSD, Rs 173.85 per litre for kerosene oil, and Rs 164.12 per litre for LDO.
The proposed changes in prices are calculated with a negative Rs 0.12 per litre exchange adjustment and consideration of global oil prices, with petrol set at $10.30/bbl and HSD premium at $6.50/bbl.
This reduction in prices, subject to government approval, marks the second consecutive relief for consumers, following a previous decrease at the beginning of May 2024.
Global oil prices have continued to fall, influenced by signs of declining fuel demand and comments from US Federal Reserve officials tempering expectations for interest rate cuts. Despite these challenges, market optimism persists, supported by expectations of extended supply cuts by OPEC+.
The anticipated cut in prices would further help decrease inflation in the country, providing relief to inflation-hit masses already grappling with economic pressures.
