Petrol prices likely to drop from September 1

F.P. Report

ISLAMABAD: Petroleum prices are expected to drop slightly starting September 1 amid downward global trend.

As per preliminary estimates, the price of petrol may decrease by 61 paisa per litre, while high-speed diesel is likely to see a more notable reduction of Rs3.13 per litre.

In addition, kerosene oil could become cheaper by Rs1.57 per litre, and light diesel oil may drop by Rs 2.61 per litre.

The Oil and Gas Regulatory Authority (OGRA) is yet to finalise and forward the summary to the Ministry of Petroleum, which will then submit the recommendation to the Finance Division.

A formal notification will be issued following consultation with the Prime Minister Shehbaz Sharif.

In international market, oil prices fell on Friday as traders looked toward weaker demand in the U.S., the world’s largest oil market, and a boost in supply this autumn from OPEC and its allies.

Brent crude futures for October delivery , which expired on Friday, settled at $68.12 a barrel, down 50 cents, or 0.73%. The more active contract for November finished down 53 cents, or 0.78%, at $67.45.

West Texas Intermediate crude futures settled at $64.01, down 59 cents, or 0.91%.

The market was in part shifting its focus toward next week’s OPEC+ meeting, said Tamas Varga, analyst at PVM Oil Associates.

Crude output has increased from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, as the group has accelerated output hikes to regain market share, raising the supply outlook and weighing on global oil prices.

“Overall, the bottom line is we’re going to see a jump in supply feeding into a lackluster demand market,” said Andrew Lipow, president of Lipow Oil Associates.