Petrol Prices in Pakistan Likely to Drop from May 1, 2025
Petrol prices in Pakistan are expected to decrease from May 1, 2025, following a significant drop in global crude oil prices. However, concerns remain over the impact of recent regulatory changes that could limit the extent of the price reduction for consumers.
Declining Global Crude Oil Prices
The international market has seen a steady decline in crude oil prices. Brent crude, which is a global benchmark, has fallen to $66.60 per barrel, while U.S. West Texas Intermediate (WTI) crude is trading at $62.85 per barrel. Analysts predict that prices may decrease by another 2.9% this week due to anticipated increases in oil production by OPEC+ nations and a potential ceasefire in the Russia-Ukraine conflict, which could help boost global oil supplies.
These falling prices on the global stage typically lead to lower domestic petroleum prices. In Pakistan, the reduction in crude oil prices has fueled expectations of lower petrol and diesel prices, which would provide much-needed relief to consumers.
Impact of Regulatory Changes
Despite the promising trend in international crude prices, experts warn that a recent change in government policy could dampen the potential benefits. The Pakistani government has abolished the Fifth Schedule, a regulation that previously capped the petroleum levy at a maximum of Rs 70 per liter. This change grants the government the authority to adjust the petroleum levy without any restrictions, raising concerns that it may use this power to increase the levy and offset the price reductions.
The new framework leaves the door open for adjustments to the petroleum levy, meaning that any savings from lower crude oil prices could be offset by higher taxes on petroleum products. This shift has sparked debates on whether the public will see tangible benefits from the decline in global oil prices or if the government will increase the levy to boost revenues.
Current Petrol and Diesel Prices
As of April 15, 2025, the government has maintained the prices of petroleum products at their current levels, despite the drop in global oil prices. Petrol is being sold at Rs 254.63 per liter, while high-speed diesel (HSD) is priced at Rs 258.64 per liter. The government’s decision to maintain prices while increasing the petroleum levy earlier this month has led to public dissatisfaction, with many questioning why the savings from falling oil prices are not being passed on to consumers.
What to Expect Moving Forward
With the expected drop in global oil prices and the government’s increased flexibility over the petroleum levy, it remains to be seen how the situation will unfold. While consumers hope for a reduction in fuel costs, the government’s ability to adjust the petroleum levy could result in a less substantial price drop than anticipated.
As the new regulatory framework comes into play, all eyes will be on the government’s next steps in balancing global oil market trends with domestic fiscal needs. The coming days will be crucial in determining whether the anticipated price reduction will provide relief to the public or whether the benefits will be minimized by policy adjustments.
