The federal government on Wednesday slashed the consumer prices of all petroleum products for the next fortnight, with effect from Aug. 1, in light of a decline in global rates of the commodity.
“The prices of petroleum products have continued to fluctuate in the international market in the last fortnight. Domestic consumer prices are required to be adjusted accordingly,” read a notification issued by the Finance Division.
“OGRA [Oil and Gas Regulatory Authority] has, accordingly, worked out prices of petroleum products and has proposed consumer prices for the next fortnight,” it added.
According to the notification, which has been approved by Prime Minister Shehbaz Sharif, the consumer price of high-speed diesel has been slashed by Rs. 10.86/liter, going from Rs. 283.63/liter to Rs. 272.77/liter. Meanwhile, the rate for petrol has been reduced by Rs. 6.17/liter, going from Rs. 275.6/liter to Rs. 269.43/liter. The prices of both petrol and high-speed diesel include Rs. 60/liter in the form of the petroleum development levy (PDL). In the budget passed in June, the government had increased the maximum permissible PDL to Rs. 70/liter, but has yet to pass on the full impact onto consumers.
Additionally, the government has notified Rs. 177.39/liter as the new consumer price for kerosene, reducing it by Rs. 6.32/liter from its earlier rate of Rs. 183.71/liter. Light-diesel oil, meanwhile, has been reduced by Rs. 5.72/liter from Rs. 166.25/liter to Rs. 160.53/liter.
Petrol is primarily used in private transportation and smaller vehicles, and its price fluctuations tend to have a direct impact on the general public. High-speed diesel, meanwhile, is considered an inflationary fuel, as it is primarily utilized in heavy transport and can have an impact on the prices of essential commodities such as vegetables and other food items.