Petrol Prices reduced by 10 Rupees in Pakistan & why they should've been reduced more.

Reduction in Petroleum Prices.

The Pakistani government has announced a minor reduction in the prices of petroleum products, including petrol, diesel, and kerosene. The new prices will be effective from December 16 to December 31, 2022.

Petroleum Products Prices:
Dec16 to Dec31, 2022:

High Speed Diesel-with Rs 7.50 reduction,Rs 227.80 per litre

MS Petrol —with Rs 10 reduction,Rs 214.80 per litre

Kerosene Oil - with Rs 10 reduction,Rs 171.83 per litre

Light Diesel Oil - with Rs 10 reduction, Rs 169 per litre

— Cartridge Articles (@cartridgearticl) December 15, 2022

According to the announcement, the price of high-speed diesel will be reduced by Rs 7.50 per liter, while the prices of MS petrol, kerosene oil, and light diesel oil will be reduced by Rs 10 per liter. Despite the reduction, petrol prices in Pakistan remain high, with a liter of petrol currently costing Rs 215.

The contradiction in Petrol Prices in Pakistan

This latest reduction in petroleum prices comes despite the fact that oil prices are currently at relatively low levels on the international market. In April 2021, when international Brent oil prices were at $113 per barrel, the price of petrol at pumps in Pakistan was Rs 150 per liter. However, today, with international Brent oil prices at just $79 per barrel, the price of petrol at pumps in Pakistan is Rs 215 per liter.

The current government, led by the Pakistan Muslim League (N), has come under criticism for not reducing petroleum prices more significantly, despite the low international oil prices. This decision has been criticized as being in violation of the International Monetary Fund (IMF) rules and regulations that are part of the country's bailout package.

PTI's blatant blunder

The previous government, led by the Pakistan Tehreek-e-Insaf (PTI) party, had heavily subsidized petrol prices in an effort to provide relief to consumers. However, this came at a significant cost to the Pakistani economy, with the subsidy estimated to have cost almost $600 million per month.

The bottom line for Petrol Prices in Pakistan 

In conclusion, while the recent reduction in petroleum prices in Pakistan is welcome news for consumers, the decision to only reduce prices slightly has been met with criticism. The government's failure to take advantage of the low international oil prices has raised questions about its commitment to providing relief to consumers and supporting the country's economy.