Petroleum prices are likely to drop in Pakistan from May 1 amid global market trends.
Following a decline in global crude oil prices, petroleum product prices in Pakistan are expected to decrease starting May 1, according to industry sources.
In recent days, the international oil market has remained volatile. Brent crude is currently trading at around $66.60 per barrel, while West Texas Intermediate (WTI) stands at approximately $62.85 per barrel. Analysts suggest this downward trend could result in a 2.9% decrease in petroleum prices.
The projected price cut is attributed to a potential increase in oil production by OPEC+ countries and the possibility of a ceasefire in the Russia-Ukraine conflict, both of which could lead to a higher global oil supply.
However, experts have raised concerns that the government’s recent move to abolish the Fifth Schedule could offset public relief. Previously, the Fifth Schedule placed a cap on the petroleum levy at Rs70 per litre, but the change now gives the government full discretion to set the levy rate.
Despite falling global prices, the federal government had kept petrol prices unchanged in its April 15 announcement, opting instead to redirect potential savings. Prime Minister Shehbaz Sharif, in a federal cabinet meeting, stated that the savings would be invested in infrastructure and development projects in Balochistan.
A statement from the Prime Minister’s Office emphasised that, rather than passing on the benefit of reduced international prices to the public, the government has chosen to use these funds to “heal the wounds of the nation.”
Currently, petrol is being sold at Rs254.63 per litre, while High-Speed Diesel (HSD) is priced at Rs258.64 per litre across the country.
