Pakistanis can expect some welcome news at the pump, with petrol prices anticipated to fall significantly starting May 16th. This follows a similar decrease earlier in May, reflecting a global downward trend in oil prices.
Reports suggest a potential reduction of Rs. 12 per liter for petrol, with diesel prices following suit by dropping Rs. 9.70 per liter. The global price of petrol has dipped to $99.93 per barrel, a decrease of $6.32 compared to recent highs. This positive shift extends to diesel, which now sits at $4.97 per barrel.
This comes as a significant relief for Pakistani consumers already grappling with inflation. However, a concerning trend emerges amidst these price drops. Data from the Oil Companies Advisory Committee (OCAC) indicates an 11% decline in petroleum product sales over the past ten months. Compared to the previous year, sales have shrunk from 13,970,000 tons to 12,443,000 tons (July 2023 – April 2024).
While lower prices offer temporary relief, the long-term impact on petroleum product sales and potential revenue needs further monitoring.
