Diesel price cut by Rs4, petrol by Re1

ISLAMABAD:

The government on Saturday gave consumers a bit of a breather, slashing Rs4 per litre on high-speed diesel and Rs1 on petrol as global oil prices took a dip.

The new prices – Rs256.13 per litre for petrol and Rs263.95 per litre for HSD – will take effect from February 16 (today).

The Oil and Gas Regulatory Authority (OGRA) had recommended a revision in fuel prices based on fluctuations in the international oil market.

HSD, a key fuel for transport and agriculture, is now priced at Rs263.95 per litre.

The reduction may provide some relief by lowering the cost of goods transportation, potentially easing inflationary pressure on commodities.

Meanwhile, petrol, primarily used in motorcycles and cars, saw a modest reduction of Rs1 per litre, bringing its new price to Rs256.13.

It may be noted that petrol serves as an alternative to compressed natural gas (CNG), particularly in Punjab, where CNG stations have either switched to imported gas or shut down over the past few years.

The price of kerosene oil, widely used for cooking in low-income households, especially in northern Pakistan, has been slashed by Rs3.20 per litre, bringing it to Rs171.65.

With a decrease of Rs5.25 per litre, the new price of light diesel oil is calculated at Rs155.81 per litre.

The recent reduction in prices of petroleum products is likely to provide much-needed relief to consumers in the wake of high inflation.

Local fuel prices are calculated based on government-imposed taxes, IFEM costs, and exchange rate fluctuations.

Data indicates that the petrol premium is currently set at $7.75 per barrel, paid on imported fuel. The oil industry recently imported three vessels of petrol.

The government is currently levying a petroleum charge of Rs60 per litre on both petrol and HSD.

Although the levy is intended for the development of the oil sector, including storage infrastructure, the funds are primarily being used to meet the government's current expenditures.