The petroleum product prices may be revised downward by Rs 1 to Rs 2 per litre as the crude oil prices have witnessed a global decline on the expectation that OPEC countries would decide against a cut in daily supplies.
The government is likely to announce the revised prices of petroleum products on April 30. The government faces a tough decision of whether to lower petroleum product prices or not as the revenue collection has registered a shortfall against the overall target.
According to an oil industry analyst, “the price of crude oil has been decreased by in excess of five percent in last two or three days.” This should allow some room for policy makers who may cut the petroleum product prices by Rs 1-2 per litre.
The OPEC and non-OPEC states have not yet conceded to the decision of when to cut the oil supplies on daily basis. Earlier, it was being considered that the oil supplies be cut by 1.8 million barrels per day, but the decision has not yet been made.
The falling prices can provide some cushion to countries such as Pakistan that are heavily dependent on oil imports.
Crude oil sold for over $100 a barrel in the summer of 2014. It hit a low of below $30 a barrel in January 2016 before currently trading at just under $50 a barrel.
