Petroleum Prices in Pakistan Expected to Decrease from 16 April 2025

A welcome respite is on the horizon! Petroleum prices in Pakistan are poised to decline for the forthcoming fortnight commencing 16 April 2025, propelled chiefly by a marked reduction in Brent crude prices on the international stage. This downturn follows the introduction of significant trade tariffs by US President Donald Trump last week, exerting downward pressure on global oil markets.

Recent data indicate that Brent crude is currently valued between $60.12 and $65 per barrel, a substantial fall from $74.74 per barrel recorded on 31 March. Although a fleeting increase to $74.95 per barrel occurred on 1 and 2 April, prices have since plummeted by more than $14 per barrel.

In Pakistan, the Petroleum Division confirms that the maximum petroleum levy of Rs70 per litre persists for both petrol and diesel. Nevertheless, the steep descent in global crude oil values has opened the door to prospective reductions in domestic fuel costs.

Analysts posit that petrol and diesel prices might be diminished by as much as Rs12 per litre, offering a much-needed reprieve to consumers.

Yet, authorities have cautioned that the government retains the prerogative to introduce General Sales Tax (GST) on petroleum products. With global oil prices now subdued, a pivotal choice looms: whether to impose GST, a measure previously deferred during periods of elevated fuel costs.

The ultimate determination on fuel price adjustments hinges on the government’s capacity to reconcile fiscal imperatives with the pressing demand for consumer relief, amid mounting calls to curb inflation through reduced energy expenses.

On Thursday, oil prices recoiled as President Trump intensified a trade dispute with China, despite declaring a 90-day suspension of tariffs on other nations. By 0630 GMT, Brent futures had declined by 39 cents, or 0.6%, to $65.09 per barrel, whilst US West Texas Intermediate crude futures shed 29 cents, or 0.5%, settling at $62.06 per barrel.