It has been reported that a historic decrease in petrol prices is expected in Pakistan. Due to a decrease in global oil prices, it is expected that petrol prices in Pakistan might go down by Rs.20-Rs.25.
As Saudi Arabia has started a price war with Russia on oil, it has cut down the prices. Also due to the novel coronavirus outbreak, prices of petroleum products have slashed.
The international oil prices went down by almost 30%. This is the lowest since 1991. This sudden decline will most definitely reduce petrol prices in Pakistan as well.
One of the fastest-growing brokerage houses in Pakistan ‘Top Securities’ has shared an analysis. As per the report, the international drop in oil prices will be beneficial to the macro-economic indicators of Pakistan. However, the oil companies will be affected due to the drop.
The firm in a report published on Monday said, “We believe lower oil prices are a net positive for Pakistan’s macros (especially the external account), as 26% of Pakistan’s imports are oil price-driven.”
Furthermore, the report said that if the oil prices go down to $20 per barrel, the oil import bill of Pakistan will decrease $ 38-4.2 billion.
Also, the firm has forecasted that exports and remittances might see a cumulative reduction by around $1-2 billion.
The report said, “Hence, on a net basis, Pakistan’s external account could potentially improve by US$2.2-2.8 billion (50% of the current account deficit) due to $20 per barrel lower oil prices.”
Also, it is expected that the greenback will remain stable against the Pak Rupee in the near future.