Lahore
The Pakistan Industrial and Traders Associations Front (PIAF) Chairman Faheem Ur Rehman Saigol, while appreciating the government plan to cut petroleum prices, has called for passing on full benefit of falling global oil rates, as crude oil prices have plunged by more than 7 percent to below $100 a barrel.
“PIAF welcomes Prime Minister Shehbaz Sharif’s statement asking the ministries concerned to move a summary suggesting a reduction in petroleum prices in view of a dip in the international fuel prices.”
Faheem Ur Rehman Saigol, in a joint statement along with senior vice chairman Haroon Shafique Chaudhary and vice chairman Raja Adeel Ashfaq, demanding to pass on full benefit of the price drop in the international market to the trade and industry, observed that the people now deserve relief, hit by the inflation.
He expected a Rs20-25 per-litre decrease in petrol and high-speed diesel prices if the government does not increase petroleum levy or impose GST on these fuels.
He said the government has been increasing petroleum prices since the last week of May as it slashed fuel subsidies to unlock IMF funding now it is time to provide relief to trade and industry.
The prices of petrol, high-speed diesel, kerosene and light diesel oil have skyrocketed 66pc (or Rs99), 92pc (Rs132.39), 95pc (Rs111.95) and 80pc (Rs100.59) since May 26, when the government introduced the first of a series of fuel price hikes.
According to reports, global benchmark Brent crude plunged $7 to below $100 a barrel on the back of a strengthening dollar, demand-sapping Covid-19 curbs in top crude importer China, and rising fears of a global economic slowdown.
The Chinese economic outlook, dimmed by lockdowns to contain Covid-19 outbreaks, appeared to be the major cause of the decline, along with increasing signs of a global economic slowdown. China is the world’s leading oil importer, and the second-largest consumer after the United States.
In addition, while demand may be weakening, supplies have withstood the strains spurred by Western sanctions against Russia, which has found new markets for its oil and petroleum products in China, India and South America.
The price of West Texas Intermediate, the U.S. benchmark, dropped 7.9 percent to $95.84 a barrel, while Brent crude, the international standard, declined 7.1 percent to $99.49. Brent briefly fell below $100 last week before rebounding. Oil prices surpassed $120 a barrel last winter after Russia invaded Ukraine.
Gasoline prices are also falling, though it takes a week or more for motorists to benefit from drops in the oil price. This is because petroleum travels through several stages of processing and marketing before it is sold at retail outlets.
The national average for regular gasoline dropped to $4.66 a gallon, nearly 2 cents. Prices have fallen 14 cents over the last week and 35 cents over the last month, but are roughly $1.50 higher than a year ago.
