Global Oil Prices Record Major Downturn
Over the past 11 days, the global crude oil market has seen a sharp slide, offering potential relief for Pakistani motorists. US crude dropped by $5.71 per barrel, moving from $69.26 to $63.48, while Brent crude saw a $5.72 decline, now trading at $65.98. This downward trend comes as oil markets respond to weaker global demand and economic uncertainty.
Impact on Local Fuel Prices
Industry estimates suggest diesel could see the biggest cut, with a projected drop of Rs10 to Rs12 per litre. Petrol may experience a more modest reduction of up to Re1 per litre. The Oil and Gas Regulatory Authority (OGRA) will present its final price review to the Ministry of Finance on August 15, with revised rates to be enforced from August 16–31, following federal approval.
Current Price Scenario in Pakistan
As of August 1, petrol sells at Rs264.61 per litre, reflecting a previous reduction of Rs7.54. Diesel, on the other hand, increased by Rs1.48 to Rs285.83. While the drop in petrol prices was welcomed, the relief was tempered by a rise in petroleum levies, which now stand at Rs78.02 for petrol and Rs77.01 for diesel.
Added Cost Factors
Consumers also face other charges, including a climate support levy of Rs2.50 per litre, dealer margins of Rs8.64 per litre, and distributor margins of Rs7.87 per litre. Diesel’s freight margin has increased to Rs6.24 per litre. These layers of costs mean even significant global price cuts often translate into modest local relief.
