Petroleum Price Cuts Likely Amid Global Market Trends
The federal government is considering reducing petroleum prices in the upcoming second fortnightly review for March 2025, due to the ongoing decline in global oil prices. Sources suggest that petrol could become cheaper by Rs13 to Rs15 per litre, while high-speed diesel prices might drop by around Rs11 per litre. This potential price cut comes as part of an effort to ease the financial burden on consumers, following a downward trend in international oil prices.
Factors Behind the Price Reduction
International oil prices have been on a downward trajectory, mainly driven by concerns over a potential US recession, the global impact of tariffs, and OPEC+ decisions to increase supply. On Tuesday, Brent futures dropped by 0.1%, settling at $69.22 a barrel, while US West Texas Intermediate crude fell by 0.2%, trading at $65.90 a barrel. These factors are contributing to a reduction in global oil prices, which has paved the way for potential price cuts at the local level.
Government Decision Pending Final Approval
The Oil and Gas Regulatory Authority (Ogra) is set to send its recommendations for adjusting petroleum prices to the Ministry of Finance. However, the final decision on the revised rates will only be made after consultations with Prime Minister Shehbaz Sharif. The public eagerly awaits the announcement, hoping for a reduction that will provide some relief to consumers, especially with the continued uncertainty in global oil markets.
