Guess what? The government has reduced the fuel prices in Pakistan again! Exactly the news many of you wanted to hear after reading our blog on expected decrease in petrol price. Now, petrol costs Rs. 15.39 less, and diesel? Well, that’s down by about Rs. 7.88. A decrease in the global petroleum prices is the major contributor to this reduction. Let’s see the latest petrol price in Pakistan and why it has gone down.

Here are the latest petroleum prices effective from May 16, 2024.

Petrol Price in Pakistan Today

If you are interested in knowing what constitutes the per liter price of petroleum products in Pakistan, you’ll find the following information useful.

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Petroleum Levy in Pakistan

This is the current (w.e.f. Apr 16, 2024) tax regime:

Glossary of Terms

• PL – Petroleum Levy or Petroleum Development Levy
• GST – General Sales Tax
• IFEM – Inland Freight Equalization Margin
• OMC – Oil Marketing Companies Margins
• DC – Dealers’ Commission
• Ex Refinery – Price per liter as sold by the refinery

Petrol Price in Pakistan: Analysis

Remember when we recently said that there is a chance of petrol prices going down because of the declining global petroleum prices? Well, it’s happening. The price per barrel in the OPEC basket has decreased from $87.83 to $83.08 per barrel in the last 15 days. Thus, the government has passed down the benefit to the local consumers.

Furthermore, if the ongoing crisis in the Middle East worsens, there’s a possibility of escalation in global petroleum prices at any time that may result in a price hike in Pakistan.

If you have got any thoughts on this, feel free to share them in the comments below.