Another Big Cut in Oil Price, Govt May Ends Lock-Down

Islamabad (Business Reporter): While weighing option of discontinuing lock-down policy, the federal government announced further decline in the oil prices. This time petrol price is reduced by PKR 7.06 per liter for the month of June.

A high level meeting is summoned on Monday to decide future course to handle COVID-19 situation. Option of lifting lock-down is on the agenda. Many countries are relaxing lock down including US, UK and India. Therefore, government is considering to lift lock down so economic activity will come in full swing.

Just a day before taking final decision on lock-down, federal government reduced petrol price by PKR 7 to fix it at PKR 74.52 per litre. Federal government reduced petrol price by PKR 15 on April 30,2020. Analysts said cumulatively government has reduced petrol prices by PKR 22.

However, the government regulator has slightly increased the price of high-speed diesel (HSD) from PKR 80.10 to PKR 80.15 per litre.

Analysts believe Pakistan’s consumer market will strengthen with the current policies. They are of the view that lifting lock down and reducing main energy price will boost buying activity. People now have more money to spent on different goods instead of pouring big chunk of income on petrol prices. This will also reduce prices of many commodities. Inflation will further be down in the next ten days, which can compel the central bank to readjust interest rate at leas at 50 basis points in the coming fortnight.

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