ISLAMABAD: Experts say that the petrol price in Pakistan should have been reduced by Rs. 25 per litre in light of the recent drop in oil prices on the worldwide market.
However, because of the rupee’s uninterrupted decline against the dollar and the local currency’s recent daily record-breaking lows, the government will be unable to pass on the savings from lower petroleum product costs to the nation’s consumers.
The petrol price review is due on July 31.
Currently, petrol is being sold at Rs230.24 per litre and diesel at Rs236.
The local currency had already hit a record low versus the US dollar, which has been strengthening for nine sessions in a row in the interbank market. The value of the dollar decreased by Rs3.09, or 1.31 percent, to settle at an all-time high of Rs236.02 in the interbank market, up from Rs232.93 the previous day.
Since July 15, 2022, when it ended at almost Rs211, the value of the dollar has increased by Rs25 against the rupee.
It is important to note that the depreciation of the exchange rate would prevent customers from receiving any benefits from a decrease in the cost of petroleum products during the next two weeks.
According to a senior oil company official, the price of gasoline should have decreased by Rs 25 per litre between July 14 and July 26, with some potential price reductions for diesel as well.
According to the condition set forth by the IMF, the currency loss could result in an increase in the price of diesel and gasoline over the course of the next two weeks, as well as a rise in the petroleum levy (PL), the official stated.
The price of crude oil was trading at roughly $103 per barrel internationally, while the price of gasoline and diesel was trading at about $100 and $120 per barrel, respectively.
According to these prices, he claimed, a drop in local oil costs was feasible if the exchange rate remained stable.
He emphasised that the government will determine the final price after taking Pakistan State Oil’s (PSO) exchange loss into account for the importation of crude and petroleum products.
He said that the local market’s dollar shortage had contributed to issues with oil import letters of credit, which were now trading for more than $240.
