Officials from Pakistan’s Finance Ministry told reporters in ISLAMABAD that the rising value of the rupee could lead to lower costs for petroleum items.
Officials have predicted that beginning on October 1st, the price of a gallon of regular petrol might drop by Rs11.98 and the price of a gallon of premium diesel could drop by Rs9.17.
They also mentioned that the price of kerosene per litre could drop by Rs5.58.
If the trend of rising oil prices in the global market continues and the rupee maintains its gains, officials from the finance ministry warned, the people would not be able to obtain total comfort.
They went on to say that if oil prices dropped worldwide, people would be able to get the most assistance possible.
On September 30th, the government will make the final call on the cost of petroleum products for the next two weeks.
Over the course of the last 12 business days, the local currency has showed remarkable recovery, rising over 5% to a five-week high of Rs292.78 against the US dollar on the interbank market.
This tariff has dropped to within Rs5 of where it was before the caretaker government took control.
A rise in the availability of foreign currency in local markets, spurred by a crackdown on its traffickers and hoarders, has contributed to the rupee’s ascent.
The State Bank of Pakistan (SBP) reports that the Pakistani rupee has risen by 0.38%, or Rs1.10, in just one day, bringing its value back up to Rs292.78 versus the US dollar.
Similarly, international oil prices dipped on Friday as worries about a slowdown in demand were more significant than supply issues coming from Russia’s gasoline export ban.
By 16:25 GMT, Brent futures had dropped 32 cents, or 0.4%, to $92.95 per barrel.
Futures for the price of a barrel of US West Texas Intermediate crude (WTI) dropped 23 cents, or 0.3%, to $89,941.
Both indicators were projected to fall by more than 1% for the week.
Concerns about a shortage in supply drove a 10% increase in the prior three weeks.
Officials from the US Federal Reserve have threatened additional rate hikes. The economy could grow more slowly and see less demand for oil if interest rates were higher.