Islamabad, 28 Apr, 2025: As global oil prices continue to dip, speculation arises around whether the government will Cut petrol prices in Pakistan in the coming days.
While international crude prices are on a downward trajectory, the public’s benefit may be limited due to recent government policy changes concerning the petroleum levy.
In the wake of substantial fluctuations in global oil prices over the past two weeks, analysts predict that Pakistan may witness a reduction in fuel prices by May 1, 2025.
However, whether this will be a significant decrease or no change at all remains uncertain. Internationally, Brent crude has fallen to $66.60 per barrel, while US West Texas Intermediate (WTI) crude is priced at $62.85 per barrel. Over the past week alone, crude prices have seen a decline of approximately 3 percent.
READ MORE: Petrol Prices in Pakistan Set for Huge Drop
Traditionally, a drop in global oil prices has led to a corresponding reduction in domestic petroleum rates in Pakistan. However, this time, the situation is more complex due to recent adjustments in the government’s fiscal policies.
The introduction of a flexible petroleum levy framework has granted the government greater control over fuel pricing. In previous weeks, the government increased the petroleum levy on all grades of petroleum products.
Under the new system, there is no upper limit on the levy, giving authorities the ability to adjust it at will.
This has sparked concerns that, despite falling international oil prices, the government could choose to raise the levy further rather than pass on the savings to consumers.
On April 15, the government opted to maintain domestic petroleum prices despite the global oil price slump, instead increasing the petroleum levy.
Currently, petrol is priced at Rs. 254.63 per litre, while high-speed diesel (HSD) costs Rs. 258.64 per litre.
Looking ahead, the public’s expectation of significant relief from the drop in global oil prices may not materialize fully unless the government refrains from further increasing the petroleum levy.
READ MORE: Petrol Prices in Pakistan Set for Huge Drop
Given the government’s ability to adjust the levy without restrictions, there are concerns that domestic fuel prices may remain largely unaffected, or only slightly reduced, even if international prices continue to fall.
As the government continues to wield control over petroleum pricing through the levy, many are left wondering if the public will ever see substantial reductions in fuel prices despite the ongoing global downturn in oil prices.
