Fuel prices may undergo major dip from 16th

The prices of petrol and high-speed diesel (HSD) are expected to further decline significantly in Pakistan from October 16 after the reduction in the rates of petroleum products in the international market.

The global oil prices were on track on Friday to post their steepest losses in a week since March, after another partial lifting of Russia's fuel export ban compounded demand fears due to macroeconomic headwinds.

Oil prices have dropped by $7 per barrel in the global market. However, on Friday, Brent futures edged higher at 7 cents at $84.14 per barrel at 1522 GMT. US West Texas Intermediate (WTI) crude futures were up 4 cents at $82.35.

In the Gulf market, crude oil prices have fallen to $92 per barrel.

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According to these rates, the prices of petrol and HSD in Pakistan should reduce by Rs22 and Rs20 per litre, respectively.

When converted from the rate of a dollar, the current price of a barrel of oil in Pakistan comes to around Rs26,220.

This is major drop from the price of Rs29,898 per barrel on September 15.

From October 1, the government had reduced the price of petrol by Rs8 -- from Rs331.38 per litre to Rs323.38.

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Similarly, the rate of HSD was decreased by Rs11 -- from Rs329.18 per litre to Rs318.18.

The finance ministry said back then that the prices of these products had been reduced because of the decrease in the international oil rates.

It also cited the improvement in the value of the Pakistani rupee as one of the factors behind the reduction in the prices of petroleum products.

The Pakistani rupee on Friday witnessed the 22nd consecutive recovery session as it gained 94 paisas against the US dollar in the interbank trading and closed at Rs282.68 against the previous day’s closing of Rs283.62.

The Pakistani rupee surged more than 8% in the past month to become the top performer in the world.

(With input from agencies)