Home Latest News Petrol Price Slashed by Rs. 15.39/liter for Next Two Weeks

Petrol Price Slashed by Rs. 15.39/liter for Next Two Weeks

Government approves significant decline in consumer prices of all petroleum products amidst drop in international market’s prices

by Staff Report

File photo. Asif Hassan—AFP

The federal government on Wednesday approved reductions in the prices of all petroleum products for the next fortnight, with petrol in particular witnessing a massive Rs. 15.39/liter cut in line with prevailing global oil rates.

In a notification, the Finance Division reduced petrol prices from Rs. 288.49 to Rs. 273.10/liter, a decline of Rs. 15.39/liter; high-speed diesel prices from Rs. 281.96 to Rs. 274.08/liter, a cut of Rs. 7.88/liter; light diesel oil price has been reduced by Rs. 7.54/liter from Rs. 168.71 to Rs. 161.17/liter; and the new price of kerosene oil is set at Rs. 173.48/liter, a decline of Rs. 9.86/liter from Rs. 183.34/liter.

“The Oil and Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market,” read the Finance Division statement, adding the new prices would go into effect from May 16 (today) and remain in place for the next two weeks.

This is the second decline in consumer prices of petroleum products within this month. On May 1, authorities had reduced petrol prices by Rs. 5.45/liter and diesel prices by Rs. 8.42/liter in line with a decline in global oil rates as stability returns to the Middle East.

Observers have expressed the hope that this decline would facilitate a reduction in inflation, which could lead to an interest rate cut by the State Bank of Pakistan in its next Monetary Policy Committee meeting. Businesses have been seeking a decline in interest rates, noting its current value at 22 percent makes it difficult to do business in Pakistan and hampers economic growth.

The cut in petrol would most benefit the private transport sector, with a majority of cars and motorcyles availing the fuel. High-speed diesel, meanwhile, primarily impacts the public transport and agriculture sectors, causing the most inflationary impact on food items. Kerosene is largely used in remote areas of the country as an alternative to LPG and natural gas. Light-diesel oil is mainly used in industries.

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