Fuel price cut of up to Rs12 likely in Pakistan

Brent crude oil prices continue to slide in international market, with prices falling significantly over the past week

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The downward trend in Brent crude oil prices continues in the international market, with prices falling significantly over the past week, Express News reported.

As of the latest update, Brent crude is trading at $60.12 per barrel, down from $74.74 per barrel on March 31. A brief rise was recorded on April 1 and 2, pushing prices slightly to $74.95 per barrel, but since then, Brent has lost over $14 per barrel.

Meanwhile, in Pakistan, the maximum petroleum levy of Rs70 per litre remains in place on both petrol and diesel, according to sources in the Petroleum Division.

They estimate that the sharp drop in global crude oil prices could allow for a reduction of up to Rs12 per litre in local petrol and diesel prices, potentially providing relief to consumers.

However, officials also noted that the government retains the authority to impose General Sales Tax (GST) on petroleum products. The recent drop in global crude prices has created fiscal space for the government to consider implementing GST, which had previously been resisted due to high fuel costs.

The final decision on fuel pricing adjustments will depend on how the government balances revenue needs with consumer relief, as pressure mounts to ease inflation through lower energy prices.