Will government slash petrol prices this time?
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Petroleum prices in Pakistan could either fall sharply or remain unchanged on May 1, depending on government decisions, despite a notable decline in global oil markets, according to reports.
Brent crude has fallen to $66.60 per barrel, while US West Texas Intermediate (WTI) stands at $62.85. Global crude prices are projected to decline by around 3 per cent this week alone.
Historically, falling global oil prices have led to domestic price cuts. However, recent changes in government policy have raised concerns that the public may not fully benefit from the trend.
The government now has the authority to adjust the petroleum levy without an upper limit, following two successive increases in recent fortnights. Analysts warn that even if global oil prices continue to slide, domestic fuel prices could remain unchanged if authorities opt to raise the levy again.
On April 15, the government kept petrol and diesel prices stable but increased the petroleum levy instead of providing relief to consumers. Petrol currently retails at Rs254.63 per litre, while high-speed diesel is priced at Rs258.64 per litre.
Unless there is a shift in policy, consumers may see minimal or no benefit from the ongoing drop in international oil prices.
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