Despite a drop in global crude oil prices, Pakistan is unlikely to see a major reduction in local petroleum product prices. Sources indicate that instead of the anticipated relief, the government is considering a marginal increase in prices following recommendations from oil marketing companies (OMCs), refineries, and fuel dealers.
Earlier, economic experts had predicted a reduction of up to Rs7 per litre in petrol and high-speed diesel (HSD) prices effective May 16. However, the Economic Coordination Committee (ECC) has approved a hike of up to Rs4 per litre to compensate industry stakeholders for their recent losses.
This proposed increase will be adjusted against the expected relief resulting from declining international oil prices. The Oil and Gas Regulatory Authority (OGRA) is preparing a summary outlining the price adjustments, which will be submitted to the Prime Minister for final approval.
Following the Prime Minister’s decision, the Ministry of Finance will issue an official notification to implement the revised petroleum prices.
While consumers had anticipated a notable price cut due to international trends, it appears that domestic industry interests may outweigh the immediate public benefit, at least in the short term.
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