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Sunday November 17, 2024

Petrol price slashed by Rs10 per litre for next fortnight

Govt announces price cut in the wake of changes in international market rates during the past fortnight

By Business Desk
September 15, 2024
A fuel station worker holds a petrol nozzle at a petrol pump. — Reuters
A fuel station worker holds a petrol nozzle at a petrol pump. — Reuters

The petrol price in Pakistan has been slashed by Rs10 per litre in the wake of a reduction in fuel rates in the international market during the past fortnight.

"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," a statement released by the Finance Division read.

The new price will be effective from midnight.

The latest change in petrol price comes as fourth consecutive price cut in two months.

ProductsExisting priceNew priceIncrease/Decrease
Petrol259.10249.10-10.00
High Speed Diesel262.75249.69-13.06
Kerosene169.62158.47-11.15
Light Diesel Oil154.05141.93-12.12

Meanwhile, the prices of kerosene oil and light diesel oil were also slashed by Rs11.15 and Rs12.12, taking it to Rs158.47 per litre and Rs141.93 per litre, respectively.

The latest change in prices comes as the fourth consecutive price cut in two months.

In the last fortnightly review, the federal government had slashed the price of petrol by Rs1.86 per litre, from Rs260.96 to Rs259.10 per litre.

Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.