Residents in Pakistan may soon experience a welcome decline in fuel prices, as forecasts suggest a potential reduction of up to Rs. 10 per liter. The initial estimates indicate a potential decrease of Rs. 10 for High-Speed Diesel and Rs. 8 for MS Petrol, set to take effect from November 15.
If international prices continue their favorable trend in the coming days, local consumers might witness a dip in petrol and diesel rates, reaching an estimated Rs. 275.38 and Rs. 293.18, respectively, in the fortnightly pricing from November 15, 2023.
However, it’s essential to note that the recent drop in global fuel prices may face some resistance from the depreciation of the Pakistani Rupee since October 15, resulting in a loss of Rs. 10.2 against the US dollar.
Interestingly, High-Speed Diesel (HSD) has become more affordable, with a decrease of approximately $8-9 per barrel on average, reaching $104 per barrel during the week. Similarly, petrol experienced a decline of $1, settling at $90.
Recalling the period between August 15 and September 15, both petrol and high-speed diesel prices surged by Rs. 58.43 and Rs. 55.83 per liter, respectively, peaking at a historic Rs. 331-333 per liter at retail until September 30. However, the massive recovery of the Pakistani Rupee from below 300 to above 278 led to a substantial reduction in fuel and diesel rates by Rs. 52 and Rs. 26 per liter, respectively, on the 1st and 15th of October.
As of October 31, petrol and High-Speed Diesel (HSD) prices were maintained at Rs. 283.38 per liter and Rs. 303.18 per liter, respectively. Surprisingly, the interim government opted to retain fuel prices during the last fortnightly review, defying expectations of a potential relief of up to Rs. 18 per liter.
In the currency market, the Pakistani Rupee has depreciated by 3.5 percent, standing at 287 against the US dollar, compared to the fortnightly average of 277 on October 16. Meanwhile, global crude prices, including WTI, Brent, and Arablight, have witnessed declines of approximately 11.6 percent, 11.1 percent, and 9.6 percent, respectively.