Oil prices likely to drop by Rs15 in Pakistan as crude oil dives to 4-decade low below per barrel
Decrease in oil prices may reduce prices of fruits, vegetables and other commodities during Ramazan
ISLAMABAD (Dunya News) – As the oil prices dived to nearly 4-decade low at just $2.99 after crashing almost 90 percent in a market flooded with crude and slammed by evaporating demand in the face of the coronavirus pandemic, the experts said that the price of petroleum products in Pakistan are likely to drop by Rs15 per litre.
Oil prices ended New York trading in the negative on Monday for the first time ever, as a supply glut forced traders to pay others to take the commodity.
With space to store oil scarce, US benchmark West Texas Intermediate for May delivery ended trading at -$37.63 a barrel ahead of Tuesday s close for futures contracts -- when traders who buy and sell the commodity for profit would have had to take physical posession of it.
Economic experts in Pakistan said that the prices of fruits, vegetables and other commodities may decrease during the holy month of Ramazan if the government announced Rs15 per litre reduction in diesel prices.
The experts further said that if the benefit of the reduction in crude oil prices in the global market is passed on to the public, the government can reduce the price of petroleum products by up to Rs 24 per liter.
“The government should announce a reduction of Rs 10 per liter of petrol and Rs 15 per liter in diesel price,” the experts said.
“The government’s announcement would raise taxes, while cheaper diesel could significantly reduce the cost of transportation that would lead to the decrease in the prices of fruits, vegetables and other commodities may decrease during Ramazan,” they added.
