Petroleum prices in Pakistan are expected to decrease for the upcoming fortnight starting April 16, 2025, primarily driven by a recent decline in Brent crude prices on the international markets. This drop follows the imposition of substantial trade tariffs by US President Donald Trump last week, which has contributed to the downward trend in global oil prices.
As of the latest update, Brent crude is trading at around $60.12 to $65 per barrel, a notable decrease from $74.74 per barrel on March 31. Although a brief rise to $74.95 per barrel was recorded on April 1 and 2, the price has since fallen by over $14 per barrel.
In Pakistan, the maximum petroleum levy of Rs70 per litre remains in effect for both petrol and diesel, according to sources in the Petroleum Division. However, the sharp decline in global crude oil prices has created room for potential price reductions in the local market.
Experts suggest that petrol and diesel prices could be lowered by as much as Rs12 per litre, providing relief to consumers.
Despite this, officials have pointed out that the government holds the authority to impose General Sales Tax (GST) on petroleum products. With the recent drop in global oil prices, the government now faces a decision on whether to implement GST, which had been resisted when fuel prices were high.
The final decision on adjusting fuel prices will depend on the government’s ability to balance fiscal requirements with the need for consumer relief, as there is growing pressure to reduce inflation through lower energy costs.
Oil prices retreated on Thursday as President Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries. Brent futures fell 39 cents, or 0.6%, to $65.09 a barrel by 0630 GMT, while U.S. West Texas Intermediate crude futures dropped 29 cents, or 0.5%, to $62.06.
