Petroleum prices in Pakistan to fall during spring: SBP
Pakistan Times Business & Commerce Desk

KARACHI: The State Bank of Pakistan (SBP) have expressed optimism that international prices of petroleum, oil and lubricants would fall during the spring season.

The latest quarterly report of the central bank says, Pakistan has to bear additional expenditures of $435.8 million due to price hike of POL items in the international markets.

According to the central bank a bumper cotton crop has also contributed towards the additional demand of High Speed Diesel (HSD), as the farming community was busy in more harvesting activities.

SBP said higher economic activity is also leading towards more demand for the POL.

The recent wide spread rains in the country according to SBP will contribute towards saving of import of POL products because "improved water supply and attendant rise in hydro electricity will cause lower dependency on thermal electricity.

SBP has estimated that during the current financial year, the demand of HSD will rise from 3618400 metric tons to 3966900 MT and fuel oil will rise from 1644700 MT to 2405700 MT.●