The Government of Pakistan on Sunday announced a Rs. 10/liter cut in the price of petrol for the next fortnight, crediting the decline to a slide in fuel prices in the international market.
“The Oil and Gas Regulatory Authority (OGRA) has worked out the consumer prices of petroleum products, based on the price variations in the international market,” read a statement issued by the Finance Division. It said the reduction would apply to all petroleum products, including petrol, diesel and kerosene oil.
According to the new rates notified by the government, petrol would cost Rs. 249.1/liter, a Rs. 10 decline from its previous Rs. 259.1/liter. The price of high-speed diesel has similarly been slashed by Rs. 13.06/liter, going from Rs. 262.75/liter to Rs. 249.69/liter. Kerosene oil would now cost Rs. 158.47/liter, a reduction of Rs. 11.15/liter from its previous Rs. 169.62/liter, while light-diesel oil would cost Rs. 141.93/liter, a Rs. 12.12/liter decline from its previous Rs. 154.05/liter.
Petrol is primarily utilized by private transportation and any fluctuations in its price impacts the common man, particularly the middle and lower-middle income classes. High-speed diesel is utilized in agriculture and transport and a decline in its price can lower inflation, as it impacts the price of essential commodities.
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.
The latest decline in prices marks the fourth consecutive price cut in two months, leading to petrol declining by Rs. 26.5/liter while high-speed diesel has seen its consumer price cut by Rs. 33.94/liter in the same period.