Rs13 cut in petrol price likely from May 16

A big relief is expected for the consumers of petroleum products (POL), as per initial estimates the price of petrol is likely to come down by Rs13 per liter and that of diesel by Rs8 to Rs9.50 per liter on May 16, 2024 for the next 15 days, reported 24NewsHD TV channel on Monday.

Senior officials of the Ministry of Energy have reportedly said that oil prices in the global market have dropped considerably after tensions between Iran and Israel were prevented from escalating and the security situation in the Red Sea also improved, thus bringing stability to the Middle East.

The price of petrol in the international market has dropped by $6.32 per barrel to come down to $99.93 per barrel.

The price of diesel is now $4.97 per barrel which shows a positive trend in the market.

If announced, this would be the second relief for consumers during the ongoing month as on May 1 the government had reduced the price of petrol by Rs5.45 per liter after which it came down from Rs293.94 per liter to Rs288.49 per liter.  

Similarly, it had reduced the price of diesel by Rs8.42 per liter following which it came down from Rs290.38 per liter to Rs281.96 per liter.

Government officials and people in the industry have reportedly said that refineries and oil marketing companies in the country are optimistic that following a sharp decline in the POL prices in the last 10 days and a halt to the smuggling of these products from Iran will lead to an increase in the consumption of these products.

Prime Minister Shehbaz Sharif will approve a decrease in POL prices.

It is hoped that decrease in the prices of petroleum products will lead to a drop in inflation, which is already on the decline.