Fuel prices in Pakistan are poised for a significant drop on November 15, with expectations of a decrease of up to Rs. 10 per liter. Initial estimates suggest a Rs. 10 reduction for High-Speed Diesel and Rs. 8 for MS Petrol. If international prices remain favorable, local rates could reach Rs. 275.38 for petrol and Rs. 293.18 for diesel. However, the benefit of global fuel rate reductions may be tempered by the Pakistani Rupee’s decline, losing Rs. 10.2/$ since October 15.
Notably, High-Speed Diesel has become $8-9 per barrel cheaper, reaching $104, while petrol decreased by $1 to $90. The fuel price journey in Pakistan saw a steep rise between August 15 and September 15, reaching a historic high of Rs. 331-333 per liter. Subsequently, due to the PKR’s recovery, prices were slashed by Rs. 52 and Rs. 26 per liter for fuel and diesel, respectively, on October 1 and 15.
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On October 31, despite expectations, the interim government retained petrol and diesel prices at Rs. 283.38 and Rs. 303.18 per liter, respectively. The Pakistani Rupee depreciated by 3.5% to 287/$ compared to a fortnightly average of 277/$ on October 16. Meanwhile, WTI, Brent, and Arablight prices dropped by approximately 11.6%, 11.1%, and 9.6%, respectively. The interplay between global trends and local economic factors continues to shape Pakistan’s fuel landscape.