Yesterday, we told you that the petrol price in Pakistan would likely reduce for the next fortnight. However, due to a sharp rise in the value of dollar against the rupee in the last two weeks, the masses may not get the complete benefit of low prices in the global market. As per media reports, the international price of crude oil has come down, which can be translated into a major cut in the local prices of petroleum products. However, it can only happen if the government passes the full impact to the masses.
On the contrary, the oil industry sources claim the government would not pass the complete benefit owing to exchange losses, putting the oil sector into a crunch. The sector will be in further trouble if its losses are not adjusted due to the high dollar rate in the past few months.
Expected Cut in Petrol & Diesel Prices
As per the global trend, the petrol price is showing a decline of Rs. 13-14/liter, but due to exchange loss, the government may reduce the price by Rs. 4-5/liter for the next 15 days. As far as diesel is concerned, the ex-refinery diesel price shows Rs. 34/liter reduction, but the exchange loss on diesel goes over Rs. 100/liter, which needs to be adjusted. Henceforth, the government may only announce a reduction of Rs. 15-20/liter.
The industry sources believe this is the right time for the government to adjust the exchange losses. The fall in crude price has provided the ruling alliance enough fiscal space to accommodate the oil companies, which are facing financial problems as they have yet to receive the full amount of exchange losses.
Currently, the exchange rate is heavily tilted towards the dollar, which is a massive hurdle for the government in reducing petroleum prices in the country. The industry experts have estimated the exchange rate for next fortnight at Rs. 283 to set the ex-refinery rates.
Current Petrol Prices in Pakistan
Petrol Rs. 267
High-Speed Diesel (HSD) Rs. 280
Light-Diesel Oil (LDO) Rs. 184.68
Kerosene Oil Rs. 187.73
