Business

Petrol prices likely to go down from May 1

Published

2 years ago

Farwa

Price of petrol is likely to decline by Rs4.5 per litre.
Per litre diesel price is expected to go down by Rs6 per litre.
On April 15, govt increased petrol price by Rs10.

ISLAMABAD: The prices of petroleum products in Pakistan are expected to decline from May 1, Geo News reported Thursday citing sources, as the government might provide relief to the inflation-hit people.

According to sources in oil marketing companies (OMCs), the price of petrol is likely to decline by Rs4.5 per litre while the price of diesel is expected to go down by Rs6 per litre.

Diesel is widely used in transport and agriculture sectors. The reduction in its price could bring inflationary impact down and a relief for farmers as the crop-harvesting season has kicked off.

The consumers are already facing high prices, especially the low-income group, who have motorbikes and small cars.

In its last fortnight announcement, the federal government increased the price of petrol by Rs10 and the price of kerosene oil by Rs5.78 “in the wake of increase in petroleum prices in the international market and exchange rate variations.”

After this increase, the prices of petrol and kerosene oil respectively rose to Rs282 per litre and Rs186.07 per litre. These fuels were earlier available at Rs272 and Rs180.29 per litre.

Last month, Prime Minister Shehbaz Sharif announced a relief package for the poor under which a subsidy will be given to them on every litre of petrol; however, the implementation was stopped after concerns from the International Monetary Fund (IMF) was highlighted.

The lender had raised objections to the proposal, asking Islamabad to share details about the implementation of the plan that was announced without “consultation”.

However, Minister of State for Petroleum Musadik Malik rejected the perception that the subsidy would be a violation of the conditions and said the ministry had responded to all the queries in detail.

But the Ministry of Finance is yet to submit a written response to the Washington-based lender to get clarity on the cross-fuel subsidy.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

15 hours ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

15 hours ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.