Petroleum prices likely to drop for next fortnight
Business
Petroleum prices likely to drop for next fortnight
ISLAMABAD (Dunya News) – The prices of petrol and high-speed diesel (HSD) are likely to drop by Rs8 to Rs10 per litre each on Nov 15 for the next fortnight, mainly due to lower prices in the global market.
Petrol, commonly used in private transport, small vehicles, rickshaws, and two-wheelers, directly impacts the budgets of the middle and lower-middle class.
Conversely, HSD price is considered highly inflationary, given its predominant use in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tubewells, and threshers. It notably contributes to the prices of vegetables and other eatables.
On Oct 31, the government had kept the petrol and HSD prices unchanged.
Sources said the global prices of both HSD and petrol had declined over the past two weeks. Nevertheless, the rupee lost value against the dollar during the same period, reducing the benefit of lower international prices for consumers.
For price calculations, officials said HSD had become about $9 per barrel cheaper on average, down from about $113 to $104, during the week, while the price of petrol had dropped by a dollar from $91 to $90. The rupee, on the other hand, lost Rs6 in value against the dollar, declining from Rs280 to Rs286.
Read more: Reports fuel optimism about further cut in petrol prices
Petroleum and electricity prices have been the key drivers of high rate of inflation recorded at 27pc in October as measured by consumer price index and are expected to be reinforced by a massive hike in gas rates with effect from Nov 1.
