Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Irfan Iqbal Sheikh has called upon the federal government to implement a significant reduction of Rs18 – Rs20 per litre in petroleum prices. He highlighted the declining trend in international oil prices despite ongoing conflicts and supply cuts announced by major oil-producing nations like Saudi Arabia and Russia, extending until December 2023.
In a statement on Monday, Sheikh expressed his anticipation that these significant oil producers would continue their cuts even beyond the slated date.
Pointing out that international oil prices have dropped to $81.30 per barrel, significantly below the 50-day moving average of $85.70, he stressed this as an indicator of a bearish global oil demand outlook. He referenced statistics showing reduced demand from the US and China, with US reserves reportedly increased by 11.9 million barrels. These trends collectively signify a downturn in the global economy, a situation exacerbated by ongoing conflicts in regions such as Russia-Ukraine and Israel-Palestine.
Read: Rs34 fall in petrol price likely
Sheikh emphasised the crucial role of petroleum prices in alleviating inflationary pressures, especially in the context of the ongoing International Monetary Fund-Standby Arrangement (IMF-SBA) review. He suggested a logical downward revision of the State Bank of Pakistan’s (SBP) policy rate from 22% to 20%, aligning it with the core inflation rate of 18.50% recorded in November 2023.
Published in The Express Tribune, November 14th, 2023.
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