Pakistanis may soon get much-needed relief as petrol and diesel expenses are predicted to drop considerably in the upcoming fuel price revision. Reviews advocate that petrol expenses should decrease by as much as Rs 15 per liter, while high-speed diesel might see a discount of Rs 11 per liter.
These claims come at a time when inflation in Pakistan has come down, and people are looking forward to significant comfort in petroleum prices from the government.
The OMAP chairman has hinted at a large reduction in petroleum costs this weekend amid a dispute with the Oil and Gas Regulatory Authority (OGRA) over ‘take or pay’ contracts with local refineries.
Local media mentioned that under ‘take or pay,’ OMCs will either buy their allocated quota of petroleum products from local refineries or pay penalties for failure to accomplish that.
The letter similarly highlighted issues over refinery practices, alleging that refineries regularly withhold supply when prices are predicted to rise—forcing OMCs to import expensive imports—while offloading immoderate stocks when costs are predicted to drop, resulting in financial losses for OMCs.
Moreover, OMAP pointed out that cross-border smuggling of petroleum products continues to distort the market, making it hard for locally sourced fuel to compete. The association called on OGRA to enforce a regulatory framework that guarantees fair market practices and prevents refineries from exploiting price fluctuations to their advantage.
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OMAP urged OGRA to reconsider the ‘take and pay’ clause, arguing that without safeguards against refinery manipulation, the proposal would most effectively exacerbate the financial problems faced by smaller OMCs and disrupt the overall petroleum delivery chain.
Current Petroleum Prices in Pakistan
The modern fee of petrol in Pakistan is Rs 255.63 per liter, excessive-speed diesel is Rs 258.64 per liter, and light-speed diesel is Rs 155.81 per liter.
New petrol prices are expected from March 16. The government will announce revised prices of petroleum products at the nighttime of March 15, and they will be carried out from the next day, March 16.
If the authorities accept the estimate supplied by the OMAP chairman, the charge of petrol will stay at Rs 247.63 per liter and the rate of diesel at Rs 246.64 per liter.