Industry sources indicate that there are no demand or supply issues in the international market.
However, uncertainty driven by geopolitical tensions, particularly the situation in the Middle East and speculation about how the incoming US leadership will address global challenges, is currently influencing petroleum product prices.
The premium on petroleum is at $8.69 per barrel. The reduction in petrol price by over Rs2 per litre has been worked out with a hike in diesel price by Rs3.62 per litre.
Petrol price for the next fortnight may settle at Rs250.20 per litre. However, after an estimated increase of Rs3.62 per litre, the diesel price may settle at Rs259 per litre.
Earlier in the month, the federal government on notified that the prices of petrol will remain unchanged for the next fortnight starting December 16.
The price of petrol remained unchanged at Rs252.10 per litre for the next fortnight. However, the government reduced in the price of high-speed diesel by Rs3.05 to Rs255.38 per litre.
Similarly, the prices of kerosene and light diesel were slashed by Rs3.32 and Rs2.78 to Rs161.66 per litre and Rs148.95 per litre, respectively.