The relief in the price of petrol by Rs 9, puts consumers and the wider economy at ease. The decline in oil prices is the result of various international and local factors affecting the oil market.
First, the abundance of oil in the world has played an important role in falling oil prices. As oil-producing countries increase production, supply exceeds demand, leading to an abundance of oil and falling prices.
In addition, geopolitical tensions and conflicts in oil-producing regions such as the Middle East have eased in recent months.
This alleviates concerns about disruption to oil supply keeping prices low. In addition, the global transition to renewable energy and the growth of electric vehicles has also affected oil demand, causing prices to fall.
Effects on the economy by relief in the price of petrol:
The relief in the price of petrol will positively affect the Pakistani economy. It will help reduce production costs throughout the economy, including those dependent on petroleum products such as transportation, manufacturing, and agriculture.
This in turn will increase productivity, increase competition, and can reduce costs for end users.
Since falling fuel prices directly affect transportation costs and fuel prices, it will also reduce the burden on the public. Low fuel prices ease the burden on families, allow them to devote their budgets to other needs, and stimulate consumer spending and the economy as a whole.
However, it is worth noting that the volatility in oil prices in the international market means that the current decline will not last forever.
Changes in the geopolitical situation, changes in world demand, etc. will affect the future price. Therefore, in order to stabilize the economy and maintain consumer satisfaction. The government and stakeholders must monitor and control the impact of oil price changes.