As global crude oil prices continue to drop, Pakistan may see a reduction in petroleum product prices starting May 1, 2025. However, experts warn that the government’s recent decision to eliminate the Fifth Schedule, which previously capped the petroleum levy, could limit the benefits for consumers.
International crude oil prices have been steadily falling, with Brent crude now priced at $66.60 per barrel and US West Texas Intermediate (WTI) crude at $62.85 per barrel. This decline is projected to continue by 2.9% this week due to expected increases in OPEC+ production and a potential ceasefire in the Russia-Ukraine war, which could boost global oil supply.
Read more: Petroleum Levy Hiked Despite Falling Global Oil Prices
Typically, such drops in crude oil prices lead to lower domestic petroleum costs in Pakistan, creating expectations of reduced fuel prices. However, the government’s recent move to abolish the Fifth Schedule, which capped the petroleum levy at Rs 70 per liter, has raised concerns. Now, the government can adjust the levy freely, leading to fears that it could increase the levy, potentially offsetting any savings from the falling crude prices.
The current prices for petrol and high-speed diesel (HSD) in Pakistan stand at Rs 254.63 per liter and Rs 258.64 per liter, respectively. Despite the global price decrease, the government recently opted to raise the petroleum levy instead of passing on the cost reduction to consumers, maintaining the prices through mid-April.
