Petroleum prices likely to go down on Oct 1

Lahore: The interim information minister Murtaza Solangi predicted that Pakistan's fuel prices will drop as the local currency continued to strengthen against the US dollar.

The information minister replied to a press release by claiming that administrative actions made by the interim government in the previous few days caused the rupee to appreciate by $30 to $35 versus the dollar in remarks to the media at the Karachi Press Club on Saturday.

He was alluding to the government' crackdown on hoarders, currency smugglers, and black marketeers that was supported by the military after the rupee hit a historic low of Rs. 308 in interbank trading and went above Rs. 330 in the open market earlier this month.

The crackdown has considerably aided the rupee's recovery, taking it to 291.76 against the dollar in the interbank market, its best level since September 5.

The currency has gained 5% or Rs15 since then, supported by dollar inflows from exporters and remittances, as well as measures by the central bank to encourage legal channels for foreign exchange transactions.

“There are enough chances that the oil prices will be reduced in the next [fuel prices] announcement,” the minister said adding that the interim government has no role in fuel prices as they are linked with international oil rates.

The interim government increased the price of fuel by more than Rs. 26 and the price of diesel by more than Rs. 17 per litre during the previous weekly review on Sept. 16, bringing fuel prices to an all-time high.

High-speed diesel is now available for Rs329.19 a litre, while petrol is supplied for Rs331.1 per litre.