Pakistan is set to see a slight decrease in petroleum prices starting September 1st, following a downward trend in the global oil market. According to preliminary estimates, the price of petrol is expected to drop by 61 paisa per litre. Meanwhile, the reduction for high-speed diesel is projected to be more significant at Rs3.13 per litre, with kerosene oil and light diesel oil also seeing decreases of Rs1.57 and Rs2.61 per litre, respectively.
The final approval for these changes is pending a formal government process. The Oil and Gas Regulatory Authority (OGRA) will first finalize its summary and forward it to the Ministry of Petroleum. This recommendation will then be submitted to the Finance Division, with a formal notification issued following consultation with Prime Minister Shehbaz Sharif.
This anticipated price relief is linked to a decline in international crude oil prices, which fell at the end of the week. Benchmark contracts like Brent crude and West Texas Intermediate saw losses, settling around $67.45 and $64.01 a barrel, respectively. This drop was driven by trader concerns over weaker demand in the United States and expectations of increased supply.
The market is now looking ahead to a key meeting of the OPEC+ alliance, which has been gradually increasing its crude output to regain market share. Analysts note that this boost in supply from major producers is feeding into a market where demand remains lackluster, a combination that continues to weigh on global oil prices.
