The federal government of Pakistan is reportedly contemplating a further reduction in petrol prices for November 2023. The Oil and Gas Regulatory Authority (OGRA) has begun drafting a proposal to decrease the prices of various petroleum products.
The final decision on this matter will be made by the Petroleum Division after consultations with the caretaker Prime Minister, Anwaarul Haq Kakar. If approved, the revised prices are expected to be implemented from November 1, 2023, subject to an official announcement.
Currently, the federal government imposes a levy of Rs 60 per liter on petrol and Rs 55 per liter on diesel. These tax rates contribute to the existing pricing structure for petroleum products across the country and are part of the current pricing mechanism for petroleum products in Pakistan.
The global oil market has seen a downward trend recently, with British crude oil prices falling below $90 per barrel and American crude oil prices dropping below $84 per barrel. This decline in the international market has led to an overall reduction in oil prices, prompting considerations for a corresponding decrease in petrol prices in Pakistan.
As the international market dynamics continue to evolve, the impact on the pricing of petroleum products in Pakistan remains subject to ongoing fluctuations and adjustments.
Earlier this week, the government of Pakistan once again increased the levy and margins on petrol and diesel. Despite this, the potential reduction in petrol prices for November 2023 is being viewed as a positive development for consumers in Pakistan.