Significant Reduction for Petrol Price is Expected

WTI and Brent Crude Oil prices have fallen sharply due to the recession and global inflation fears, which automatically decrease the demand for oil globally. Oil/petrol prices globally have dropped nearly USD 10, which is significant, and they are at the level of 2021 prices. The USD is also declining globally due to US President Donald Trump's actions regarding tariffs and unexpected announcements one after another, which have automatically impacted US bonds as well, which was the reason the US President to pause tariffs for 3 months except for China.  

Experts suggest that the government of Pakistan might reduce the petrol price by up to 8 PKR, and for diesel, the government might reduce the prices up to 7 PKR. For kerosene oil prices, the government might also reduce the price by up to 7 PKR. The new prices will be announced on the night of 15th April , and it is expected that the government might reduce the petrol prices this time. 

It is not confirmed that the government this time will reduce the price of petrol because the government of Pakistan does not want the current account deficit to increase, and they do not want another high import bill due to reduction in petrol prices. Therefore, it is a possibility that the government will increase taxes or petroleum levies on petrol products so that the current account deficit and high bill remain in check. Moreover, FBR is also facing a shortfall in collecting the desired agreed target set by Pakistan and the IMF. It is also likely that Pakistan will reduce the prices of petroleum products, but not that much, as it could help Pakistan to collect the taxes and achieve those figures, which are agreed with the IMF.