'Big relief' in petrol price expected from May 16

ISLAMABAD: “Big relief” in petrol and diesel prices is expected for consumers in Pakistan following a decrease in global oil prices, ARY News reported on Monday citing sources.

Sources said the government is expected to cut petrol price by Rs14 per litre and diesel by Rs10 on May 16 for the next fortnight revision.

Last month, the government slashed the price of petrol and high-speed diesel for the next fortnight by Rs5.45 and 8.42, respectively.

The current petrol price is Rs288.49 per litre and that of HSD is Rs281.96.

Meanwhile, oil prices extended declines on Monday amid signs of weak fuel demand and as comments from U.S. Federal Reserve officials dampened hopes of interest rate cuts, which could slow growth and crimp fuel demand in the world’s biggest economy.

Brent crude futures slid 25 cents, or 0.3%, to $82.54 a barrel, while U.S. West Texas Intermediate crude futures were at $78.07 a barrel, down 19 cents, or 0.2%.

Oil prices also fell amid signs of weak demand, ANZ analysts said in a note, as U.S. gasoline and distillate inventories rose in the week ahead of the start of the U.S. driving season.

Refiners globally are struggling with slumping profits for diesel as new refineries boost supplies and as mild weather in the northern hemisphere and slow economic activity eat into demand.