According to initial estimates, the reduction in
petrol price would be by Rs13 per litre and diesel Rs8-9.50 per litre from May 16, 2024, as the global prices have massively tumbled after stability in the Middle East returned following the Iran-Israel missile attacks and reduction in the Red Sea tension.This would be the second relief in a row in the current month. From May 1, 2024, the authorities had reduced the motor spirit (MS) price by Rs5.45 per litre to Rs288.49 per litre from Rs293.94 per litre.Similarly, the diesel price was also reduced by Rs8.42 per litre to Rs281.96 from Rs290.38 per litre from May 1. Now the sizeable relief in POL product prices is expected from May 16 for the next fortnight in the range of Rs9-13 per litre.The said relief has been worked out as per the initial estimates keeping in view the last 10 days trade of POL products in the international market. However, in the next two days, the projections about the relief would be further firmed up, which will be applicable from May 16, 2024, after approval by the prime minister.This would further help decrease inflation in the country which is already on the decline. The Sensitive Price Index (SPI)-based inflation for the week ended on May 9, 2024, decreased by 1.39 percent due to decline in the prices of onions (19.22 percent), chicken (18.83 percent), wheat flour (4 percent), LPG (3.67 percent), bananas (2.32 percent), garlic (1.44 percent), rice basmati broken (0.75 percent), mustard oil & sugar (0.48 percent. “The impending relief in POL products would further decrease the inflation as the transportation cost of all vegetables and kitchen items will further reduce.”Globally, petrol prices have fallen by $6.32 per barrel to $99.93, showing a positive market shift. The relevant government and industrial sources said that from May 16, Pakistan refineries and oil marketing companies hoped that the consumption of petroleum products would increase because of the massive reduction in POL prices and halt in influx of smuggled POL products from Iran in the last 10 days.