In some positive news, the Prime Minister of Pakistan Shahbaz Sharif announced that the government is decreasing petrol prices. This comes as a relief to the people who have been troubled in recent times by excruciatingly high inflation, rainwater flooding the streets and long hours of load shedding which gives the feeling of being back in the stone age.
But all of that immediately seems to go in the background with the announcement of slashing petroleum prices. The people take and enjoy the little relief and joy they find in the country.
But the real question is, why were the prices slashed? Just when everyone was bracing for holes being cut out in their wallets because of increasing petroleum prices, there was a sudden decrease.
Let’s get things in order, shall we? We all know that petroleum prices are dictated by the international price of crude oil, and this is the major reason why the prices were cut.
As you can see by the graphics provided on Twitter by our Minister for Finance. The Brent crude oil prices touched $122 in June and today have come down to $95. That’s a difference of $27. It was the very right thing to do to decrease the prices.
Prices are bound to go up again.
The recent decrease in prices shouldn’t cloud everyone’s memory about the approval of the RS 50 levy on petroleum. This meant that petrol was bound to go up to RS 283/- liter and with the recent decrease of RS 18.5/- liter, it’s still bound to go up to RS 264.5/- liter. Why? Well because the government is still implementing the RS 50/- liter levy on petroleum and it’s supposed to go up in phases.
International Prices going down.
Petrol prices in Pakistan are subject to further decrease in oil prices in the international market which seems that they are going to go down further as Brent oil futures were traded for $95 for the month of September and U.S. West Texas Intermediate crude for August delivery was at $91.63 a barrel Both contracts hit lows on Thursday which were below the Feb. 23 close, the day before Russia invaded Ukraine, with Brent reaching its lowest since Feb. 21.