The federal government on Wednesday reduced the petrol price by Rs6.17 per litre for the next fortnight after a drop in oil rates in the global markets, according to a statement issued by the PM Office.
The new prices will be effective from August 1.
The Oil and Gas Regulatory Authority (Ogra) worked out the consumer prices for the upcoming fortnight, based on international prices and exchange rate variations, the notification read.
After Prime Minister Shehbaz Sharif’s approval, the petrol price was fixed at 269.43 from Rs275.60 per litre with a reduction of Rs6.17.
The new price of high-speed diesel (HSD) will be Rs272.77 from the existing rate of Rs283.63 per litre following a reduction of Rs10.86.
The kerosene price was reduced by Rs6.32 per litre which reduced its price to Rs177.39 from Rs183.71 per litre.
Subsequently, the light diesel oil (LDO) rate was decreased to Rs160.53 per litre as opposed to the current rate of Rs166.25 per litre following a cut of Rs5.72 per litre.
The relief in POL [petrol, oil, lubricants] prices was expected after the “$1.50 per barrel reduction in premium by Kuwait Petroleum Company (KPC) on diesel and less demand for POL products by the world’s best biggest economies i.e., the United States and China,” The News reported quoting sources two days ago.
In the previous fortnight, the petrol price was increased by Rs9.99 per litre for 15 days, from July 16 to July 31. The rate of high-speed diesel (HSD) was also jacked by Rs6.18 per litre
However, the petroleum development levy (PDL) was kept unchanged despite the federal government increased the duties by Rs10 per litre — from Rs60 to Rs70 — in the federal budget 2024-25, further burdening the inflation-hit masses.
Petrol is mainly utilised in private transportation, small vehicles, rickshaws, and two-wheelers, greatly impacting the budgets of the middle and lower-middle classes.
However, a significant portion of the transport sector relies on high-speed diesel. Its price is viewed as inflationary since it is predominantly used in heavy transport vehicles, trains, and agricultural machinery such as trucks, buses, tractors, tube wells, and threshers, which particularly contributes to the increased prices of vegetables and other food items.
