ISLAMABAD:
Pakistani consumers should expect a hefty cut in fuel prices following a sharp decline in the value of Brent crude, which plunged to a new low on Thursday.
A decrease of up to Rs10 per litre is likely to come into effect next month, The Express Tribune has learnt. Earlier this month, the government slashed fuel prices by up to Rs14.68 per litre after crude prices dipped in the international market.
With a glut of crude oil coming out of the US shale reservoirs, crude prices, which dropped to $77.75 per barrel on Thursday, have provided enough breathing space for the government to reduce fuel prices in the country.
Commenting on the global trend, government officials said that domestic oil prices were likely to come down by Rs10 per litre for the month of December.
However, they said, the final calculation is to be made by the Oil and Gas Regulatory Authority (Ogra) on Friday (today).
Following the expected cuts next month, the price of High Speed Diesel (HSD), which is widely used in heavy transport vehicles and the agriculture sector, is likely to come down by Rs6 per litre. Currently, it is sold at Rs101.21 per litre.
Similarly, the price of petrol could witness a cut of Rs9 per litre against its current price of Rs94.19 per litre. Kerosene oil, which is used as kitchen fuel in remote areas of the country, may record a decrease of Rs4 per litre. Its current price is Rs87.52 per litre.
Likewise, consumers of High Octane Blending Component (HOBC), used mainly in luxury vehicles, are likely to enjoy a reduction of Rs10 per litre against the current price of Rs116.45 per litre.
The 30 per cent drop in the value of Brent crude, triggered by a sharp rise in US shale oil output, has provided an unparalleled opportunity for governments across the globe to slash rising fuel prices.
Published in The Express Tribune, November 28th, 2014.
COMMENTS (35)
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I am positive that if PTI hadn't put pressure on the government for the past several months they would have never passed on the international price decrease to the public.
Do not forget that in the 1990s Nawaz Sharif government did not pass on the global oil price decline to the public.
Respected Nawaz Sharif has done a good work here by reducing the prices of oil. I don't understand the criticism done by paid trolls of PTI on Social Media.
I do not understand the need to compare a whole lot of political parties. If Nawaz Sharif has taken a stand to bring the oil prices down just as his success at the SAARC summit then why can't praise be given to him for it. He deserves it. He is making an effort to put things right and so he should be encouraged and appreciated. Holding comparisons is just not right. One has to prove their worth. I salute the present government for achieving this target. It comes as a relief to the masses and is a major step towards eradicating poverty.
It is now USD 68 per Barrel. in 2009 when oil wz at same level petrol and diesel price in pakistan was Rs 62 so how on earth u thanks nawaz for taking Rs 22 extra after the reduction on 1 December
@faisal: "If you think education is expensive, try ignorance''.
I appreciate the government. well done.
Credit goes to drop in oil prices in international prices as oil prices are lowest in 4 years. However, we must accept that Govt. may not have transferred such huge benefits to people had there been no Dharna. So, to me, Dharna is as blessing in disguise!
Lol.......... It seems from above comments that IK is so influential to drop the oil prices in international market lowest in 4 years.
So PTI trolls are in full swing and I am amused by their ability to grab NS govt credit in IK bucket.
Atleast IK and his supporter has one skill to snatch other's good work in their basket.
Bravo Nawaz...nation is with you except few blind supporter of "Dharna King"
Nothing that can give Nawaz credit for reducing the oil prices in the country. Oil prices have slashed down in international market. Check the trend for this month alone.
Thank you Nawaz Sharif. Allh bless you.
NS is the best PM. Great work done by him.
Good move by the government. I appreciate. Prayers for Nawaz Sharif.
Good work done by the government should be appreciated. But haters will continue their criticism.
Wll done NS
@Ch. Ghafoor Islam: Really?!! Please elaborate how NS is responsible for a decrease in world oil prices.
@waseem: Hopefully it is not because you think NS somehow has some influence on the Brent crude oil price or the world oil production! The government is not doing people any favours by decreasing the oil prices but it is their duty to do so. Similarly, they will increase it once the prices start going up.
how many feel that NS is capable of taking any decision esp with 2/3 majority?
Good! Today if dharna is called off. Tommorrow, the price reduction withdrawn!
Can the Government stop increasing the price of electricity!
Bravo Nawaz Sharif.
@oBSERVER: LOL. What else did Khan say. Tell me more about it.
This reduction in fuel price is the result of the vigorous and focussed campaign started by Qadri and Imran. Thank you Imran and Qadri Sahib. Consequently, the price of fuel has come down. Luckily for the PMLN government, the global oil glut is seeing prices tanking to the level of USD. 77/= per barrel and more reductions can be seen coming, InshAllah. In the past couple of years the price of fuel did not come down albeit it should have. Now, how will PMLN balance the budget? What will happen to the abominable "GST?" How will the PMLN recover taxes or will it resort to the die-hard habit of running to the World Bank? Will intra-city commuting become cheaper? Will it facilitate reduction in the price of CNG? Salams
this would have never happened if IK was not ratcheting up the pressure..have you ever seen petrol prices go below 2 or 3 rupees..EVER in the last 15 years..before these lifesaving protests took place...i am more convinced than ever that IK is the only hope for this country.
Imran for the love of God..dont spare these PMLN and PPP looters and corrupt!
Thank you Imran Khan for keeping up the pressure on the Government. Even if the prices had dropped to a dollar the badshah salamat would have never moved unless there was pressure from the dharnas.
Thank you Imran Khan it is only due to your pressure.
Thanks but Nov 30th will still happen!
Why CNG prices are not cut down too? Isn't it tied with petroleum products too?
Still doubt Imran Khan's sit in protest in Islamabad? Trust me, had PTI kept quiet & PPP acted as the opposition party, then petrol prices would have remained over Rs 100! PMLN used to decrease petrol prices by Rs 0.50-0.80 till Azadi March started in August! The crude oil price has been falling since June but Govt kept on robbing us! Same goes for electricity, PMLN says that sin e crude oil was expensive & most of our electricity is generated through furnace oil power plants, the cost of electricity is high. But why have they refused to reduce electricity unit cost since June?! We should thank Imran Khan for putting pressure on PMLN! This illegal Govt has sold Pakistan to IMF & other lenders!
Good move by the Federal Government.
Allah bless Nawaz Sharif. I pray for his success.
Good news, but only if the other commodity prices are also brought down to the pre-increase levels.
Imran Khan was right when he said that last decrease was much less than decrease in world oil prices decrease. Another attempt by Nawaz Sharif and Noon League to defraud people. Thank you Imran Khan and PTI.