POL prices slashed by up to Rs11 per litre

In the caretaker government's first step of relief to the inflation-hit people, the prices of petroleum products have been reduced by up to Rs11 per litre, in a first major decline in two months on the back of an strengthened rupee.

The new prices have been implemented from Sunday (today). The price of petrol has been reduced by Rs8 -- from Rs331.38 per litre to Rs323.38.

Similarly, the rate of high-speed diesel (HSD) has been decreased by Rs11 -- from Rs329.18 per litre to Rs318.18. The new prices will remain in effect for the next 15 days.

The finance ministry said the prices of petroleum products had been reduced because of the decrease in the international oil rates. International oil prices settled 1% lower on Friday due to macroeconomic concerns and profit taking, but rose about 30% in the quarter as OPEC+ production cuts squeezed global crude supply.

Front-month Brent November futures settled down 7 cents to $95.31 per barrel at the contract's expiry, up about 2.2% in the week and 27% in the third quarter. The more liquid Brent December contract was settled down 90 cents to $92.20 per barrel.

US West Texas Intermediate crude (WTI) settled down 92 cents to $90.97, up 1% in the week and 29% in the quarter.

With oil futures inching closer to $100 a barrel, many investors took profits on the rally given ongoing macroeconomic concerns. The finance ministry also cited the improvement in the value of the Pakistani rupee as one of the factors behind the reduction in the prices of petroleum products.
Also read: Petrol, diesel witness massive price hikes

The Pakistani rupee has claimed the title of the world’s best-performing currency for September, marking a seven-week high against the US dollar. On the 17th successive working day of its upward trajectory, the rupee closed at an impressive Rs287.74 against the greenback, gaining 0.35% or Rs1.01, according to the State Bank of Pakistan’s data.

Over the past 17 working days, the Pakistani currency has cumulatively strengthened by an impressive 6.73%, recovering 19.36 from its record low of Rs307.10/$ on September 5, 2023. This remarkable performance has brought the rupee back to its pre-caretaker government levels.

Earlier, the authorities were expecting the price of a litre of petrol to fall by Rs11.98 and the rate of HSD to dip by Rs9.17 but it turned out to be the other way around.

However, the consumers of liquefied petroleum gas (LPG) are in for tougher times ahead as the Oil and Gas Regulatory Authority (Ogra) has notified an increase of Rs21 per kg of the product for the month of October.

According to a notification issued by Ogra, the price of a domestic cylinder of LPG has been jacked up by Rs246. From Sunday, a domestic cylinder of LPG will cost Rs3,080 instead of its earlier price of Rs2,833.

Similarly, the price of commercial LPG cylinder has been increased by Rs947. Ogra has set the price of LPG for commercial use at Rs261 per kg against its previous rate of Rs240.

The price a commercial LPG cylinder has been pushed up from Rs10,902 to Rs11,849.

(With input from agencies)