The fuel prices in Pakistan are regulated by a regulatory authority called OIL & GAS Revenue Authority (OGRA). They regulate fuel prices after every 15 days in Pakistan. This time, the new price revision is due on 1st May. As per the sources, Petrol may get cheaper in Pakistan from 1st May. Here is how.
The drowning economy of Pakistan is in front of everyone. There may be many differences in the opinion that why and how it became so volatile but its after-shocks are huge. The biggest drawback of a drowning economy is that the exchange rates are much higher and the balance of payments is also negative for Pakistan.
Because fuel is major import and Pakistan has to pay in dollars, the increasing dollar prices caused high fuel prices. Also, Pakistan buys fuel from Saudia Arabia and Gulf countries which offer fuel at premium prices as well. This time Pakistan has tested fuel from Russia which is estimated to be a lot cheaper than the currently available prices.
As an estimate, Russian fuel will be 30% cheaper (approximately). This fuel is being imported for 1st time in Pakistan and will be tested. Pakistan has made payments in Chinese yen to Russia. China is also one of the biggest importers of Russian fuel.
Technically, the fuel should be 30% cheaper in Pakistan but realistically, such huge relief is not possible from the current political government and a weakening economy. The new petrol may or may not be cheaper but let’s see!