Due to the ongoing decline in the prices of petroleum products (POL) in the international market, consumers in Pakistan may get relief up to Rs38 per litre, and prices are projected to fall further.
Details indicate that the price of oil has been steadily declining on international markets, forcing Pakistanis to purchase pricey petrol and diesel and even the price of crude oil has risen to between $71 and $75 per barrel globally.
According to sources within the Ministry of Petroleum, a barrel of petrol costs between $76 and $77 dollars, which is approximately RS186 in Pakistani currency. While there is still no sales tax on any petroleum goods, levies on petrol are already being collected at a rate of Rs50 per litre.
The working petroleum division of oil purchase will be eliminated by OGRA until December 15, according to the officials, and OGRA working will only involve oil purchases until that date. The Finance Minister will decide how the OGRA will operate after consulting with the Prime Minister.
According to sources in the Ministry of Petroleum, the price of crude oil is $76.15 per barrel on the Brent oil market and $71.46 per barrel on the WTI market, with the government making up to Rs25 for every litre of petrol sold.
Earlier, State Minister for Petroleum Division Musadik Malik announced that Russia decided to provide crude oil, petrol, and diesel to Pakistan at discounted rates.
The decision comes a month after Finance Minister Ishaq Dar said that the country is considering buying discounted Russian oil, pointing out that neighbor India has been purchasing oil from Moscow and Islamabad also has a right to explore the possibility.
Subsequently, Minister of Petroleum division Musadik Malik flew to Russia last week for talks regarding oil and gas supplies at discounted rates.
In a press conference in Islamabad, Musadik Malik said: “Our visit to Russia turned out to be more productive than expected.”
“Russia has decided to provide Pakistan crude at discounted rates […] this is the oil that refineries use to produce diesel and petrol […]. Russia will also give petrol and diesel to Pakistan at lower prices,” he announced.