Islamabad, 31 October, 2023 (GNP): According to sources, there is a possibility of a significant reduction in fuel prices starting from November 1. It is indicated that petrol rates could decrease by up to Rs 18 per liter, while diesel prices might see a reduction of Rs 5 per liter.
In the past, the interim government had taken steps to reduce the burden on consumers. The cost of petrol was cut by Rs 40 per liter, bringing it down to Rs 283.38 paise per liter. High-speed diesel prices were also decreased by Rs 15 per liter, setting them at Rs 303.18 paise per liter for the period from October 16 to 31.
The primary driving force behind this potential price drop is attributed to the recent strengthening of the Pakistani rupee against the US dollar.
Over the past two weeks, the rupee has gained around 3 rupees in value. Additionally, there has been a global decrease in diesel prices by approximately $1.3 per barrel and a significant $3.5 per barrel reduction in petrol prices.
While there is an option for the government to increase the development levy on diesel from Rs 55 to Rs 60 per liter, the current revenue generation has exceeded expectations, reducing the need for such an adjustment.
It’s worth noting that the petroleum levy on petrol is already set at Rs 60 per liter, making a substantial contribution to government income.
Rising costs of petroleum products and electricity have played a pivotal role in propelling the inflation rate to a staggering 31.4 percent in September. The recent increase in gas rates has further raised concerns about the escalating expenses.
Insider information suggests that, considering existing taxation levels and various economic dynamics, there is a possibility of petrol rates experiencing a notable drop of Rs 17-18 per liter. This reduction has been driven by the swift shift in the currency exchange rate from Rs 282 to Rs 279 over just 15 days.
The reduction in fuel prices, if implemented, will come as welcome relief for consumers facing the economic challenges posed by recent inflation.