Much-needed relief

With fresh downward revision of Rs2 per litre, the price of petrol has come down to Rs95.83 from Rs97.83 in November

In a much-needed relief, the government has slashed the prices of all petroleum products for the month of December, and given the good news of further cut in the coming months in view of the fall in prices in the world market. The news of an essential consumer item going down followed quite a few bad ones from the economic front — like the dollar soaring into the highs never ventured before, alerting on an imminent raise in the prices of imported consumer items; the stock market taking a toll of the various government decisions; and the central bank raising its policy rates by 150 basis points, to 10%. Hence a cut in the prices of petroleum products and the promise of further cuts is a welcome respite — as if a boundary after a lot of dot balls.

With the fresh downward revision of Rs2 per litre, the price of petrol has come down to Rs95.83 from Rs97.83 in November. This is despite Ogra, the regulator, having recommended a raise of Rs6.21. The price of high speed diesel has also been cut by Rs2 per litre to fall to Rs110.94 from Rs112.94 in the previous month. This is the fourth time the PTI government has had to deal with the monthly price revision. Assuming power in August, the government had made a major cut in the price of diesel, of Rs6.37, for the month of September, besides bringing down the petrol price by Rs2.41. For the month of October, the government left the prices of all petroleum products unchanged. The relief given in the two months was almost accounted for when the government raised the prices of diesel and petrol respectively by Rs6.37 and Rs5.

Overall, there has been a nominal raise in the price of petrol in the months from September to December — from Rs95.24 to Rs95.83. Whereas the price of diesel has come down to Rs110.94 in December from Rs112.94 before the start of September.

Published in The Express Tribune, December 2^nd, 2018.

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