Motorists in Pakistan may not see any relief in petrol and diesel prices even though international crude oil prices have declined in recent weeks.
According to media reports, the government is expected to keep domestic fuel prices unchanged by adjusting petroleum-related taxes and levies instead of passing the benefit on to consumers.
The move is aimed at maintaining revenue needed for the national budget and meeting financial commitments.
Officials believe that reducing fuel prices could lower government income at a time when Pakistan is trying to strengthen its economy and stay on track with fiscal targets.
Energy experts say global oil prices have fallen enough to allow a reduction in local fuel rates. However, they note that taxes, exchange rate movements, and other charges also play a major role in determining the final prices paid by consumers.
If the government decides not to lower prices, consumers and businesses may continue to face high transportation and operating costs despite cheaper oil in international markets.
A final decision on petroleum prices is expected to be announced before the next pricing period begins.
