KARACHI: There is expectation of another reduction in fuel prices in Pakistan, with a potential decrease of up to Rs. 10 per liter. Preliminary estimates suggest that the rates for High-Speed Diesel may drop by Rs. 10 per liter, and MS Petrol by Rs. 8 per liter on November 15.

If global prices continue to stay favorable in the coming days, local petrol and diesel prices could decrease to Rs. 275.38 and Rs. 293.18, respectively, in the upcoming biweekly pricing effective from November 15, 2023.

However, the advantage of lower global fuel rates might be counteracted by the depreciation of the Pakistani Rupee since October 15, resulting in a loss of Rs. 10.2 against the US dollar to date.

It’s noteworthy that High-Speed Diesel (HSD) has become approximately $8-9 per barrel cheaper on average, reaching $104 during the week, while petrol has seen a decrease of $1, down to $90.

Recall that between August 15 and September 15, the prices of petrol and high-speed diesel rose by Rs. 58.43 and Rs. 55.83 per liter, respectively, reaching a historic Rs. 331-333 per liter at retail until September 30.

Subsequently, due to a significant recovery of the Pakistani Rupee from below 300 to above 278, fuel and diesel rates were reduced by Rs. 52 and Rs. 26 per liter, respectively, on the 1st and 15th of October.

On October 31, petrol and High-Speed Diesel prices were maintained at Rs. 283.38 per liter and Rs. 303.18 per liter, respectively. Despite expectations of a potential relief of up to Rs. 18 per liter at the last biweekly review of petroleum prices, the interim government retained fuel prices.

It’s worth noting that the Pakistani Rupee has depreciated by 3.5 percent to 287 against the US dollar compared to a biweekly average of 277 on October 16, while the prices of WTI, Brent, and Arablight have dropped by approximately 11.6 percent, 11.1 percent, and 9.6 percent, respectively.