In an interesting development, the federal government is expected to significantly reduce the petrol prices in Pakistan in the upcoming fortnightly review on March 15.
According to sources, the government may take the decision to slash the petrol prices in Pakistan by up to Rs14 per litre which would be implemented from March 16.
While the sources suggest a massive cut in petrol prices in the upcoming fortnightly review, the High-Speed Diesel (HSD) prices are also expected to be cut down by Rs8 per litre.
Impact of petrol prices in Pakistan
Reduction in petrol prices provide a much-needed relief to the nation as it is the main source of fuel in transportation across the country. Any rise or drop in petrol prices significantly impacts the citizens’ purchasing capacity as fuel is regularly used in daily commutes.
While petrol is mainly used in private transportation, HSD is mainly used in heavy traffic vehicles like trucks, buses, buses, and agricultural machinery such as tractors, tube wells, and threshers. Fluctuation in HSD prices contributes to fluctuation in prices of essential food items like vegetables and fruits.
It merits a mention that the government of Pakistan routinely revises the petrol prices in Pakistan twice a month after every 15 days.
Previous Review of Petrol Prices in Pakistan
In the last review of petrol prices in Pakistan on February 28, the government decided to reduce the price of petrol by only Rs0.5 per litre while prices of High-Speed Diesel (HSD) were reduced by Rs5.31 per litre.
It should be highlighted that before the last updates in prices on February 28, the media reports had suggested the price reduction of petrol would be greater.
Meanwhile the actual changes in petrol prices across Pakistan mostly depend on the international prices of oil. The expected drop in petrol prices in Pakistan would also depend on fluctuation of global oil market in the next three days.
