Pakistan is likely to witness a reduction in petroleum prices starting October 1, driven by the stability of the Pakistani rupee against the US dollar, the source said.
These sources have also noted a decrease in international market prices contributing to this anticipated price drop. The final decision on adjusting petroleum prices will be made after consultations between the Ministry of Finance and the caretaker Prime Minister, Anwaar-ul-Haq Kakar.
This development follows recent statements by the Oil and Gas Regulatory Authority (Ogra), which cautioned against speculating on petroleum product prices. Federal ministers had earlier suggested that prices of petroleum, oil, and lubricants (POL) products were likely to be reduced in the upcoming fortnightly review.
Caretaker Federal Commerce and Industries Minister Gohar Ejaz and Interim Federal Minister for Information and Broadcasting Murtaza Solangi had both indicated that POL prices might decrease, especially as the Pakistani rupee strengthened against the US dollar. Over the last two weeks, the rupee has appreciated by approximately Rs19 against the dollar. This currency stability is noteworthy as Pakistan, an importer of petroleum, transacts in dollars for purchasing the commodity.
In the previous fortnightly review, the caretaker government had raised the price of petrol by more than Rs26 and diesel by over Rs17 per litre, reaching historic highs of Rs331.38 and Rs329.18, respectively.
Ogra has underscored that petroleum product prices in Pakistan are closely linked to international market prices and the exchange rate of the US Dollar. While international petroleum prices have surged recently, the improvement in the dollar-to-rupee exchange rate is favorable.
However, the authority has emphasized that there is still one week remaining before the announcement of new prices. Consequently, any speculation about price fluctuations during this period is considered highly speculative and could potentially disrupt the smooth functioning of the oil supply chain.
