The recent decline in global crude oil prices could result in a reduction of up to Rs. 12 per liter in petrol and diesel prices in Pakistan.
As of April 9, 2025, Brent crude oil is trading at $60.12 per barrel, down from $74.74 per barrel on March 31. This significant decrease of over $14 per barrel since April 2 has prompted discussions about potential adjustments in domestic fuel prices.
According to sources within the Petroleum Division, the drop in crude oil prices translates to an estimated decrease of Rs12 per liter for both petrol and diesel. Currently, the government imposes a full levy of Rs70 per liter on these fuels.
The government also has the authority to introduce a General Sales Tax (GST) on petroleum products. The declining trend in global oil prices may facilitate the implementation of GST, providing additional fiscal flexibility.
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The Oil and Gas Regulatory Authority (OGRA) is expected to review the pricing structure and recommend adjustments in line with international market trends. Any changes would be subject to approval by the Ministry of Finance and could be reflected in consumer prices in the coming weeks.
