As global crude oil prices continue to decline, there is growing speculation that petroleum product prices in Pakistan could be reduced starting May 1, 2025. However, experts warn that the government’s recent removal of the Fifth Schedule, which previously capped the petroleum levy, might diminish the impact of any potential price cuts for consumers.
Crude oil prices have been on a steady downward trend, with Brent crude futures currently at $66.60 per barrel and US West Texas Intermediate (WTI) at $62.85 per barrel. These prices are expected to fall by 2.9% this week, partly due to a likely increase in oil production by OPEC+ and a potential ceasefire in the Russia-Ukraine conflict, which could enhance global oil supply.
Typically, lower crude oil prices lead to reduced costs for petroleum products in Pakistan, raising hopes for a reduction in domestic fuel prices. However, the government’s recent move to abolish the Fifth Schedule has introduced uncertainty. This schedule once limited the petroleum levy to a maximum of Rs 70 per liter, but with its removal, the government now has the authority to adjust the levy without restrictions.
This shift has sparked concerns that the government may increase the levy to offset the benefits of lower global oil prices, potentially preventing any significant reduction in fuel prices for the public.
Related topics：
