Govt slashes jet fuel price by Rs48 per litre

Reduction brings cumulative cut to Rs283 per litre since record high of Rs517 touched during US-Iran war

KARACHI:

The government on Saturday provided major relief to airlines and aviation companies by reducing the price of jet fuel for large aircraft by Rs48.80 per litre.

A day earlier, the government announced a reduction in petroleum prices, slashing both petrol and high-speed diesel by Rs22 per litre, in a move that was presented as an "Eidul Azha gift" for the public on the third day of the festival.

With the drop, the revised ex-depot price of high-speed diesel was fixed at Rs380.78, down from Rs402.78, while motor spirit (petrol) dropped to Rs381.78 from Rs403.78.

According to a notification issued by Pakistan State Oil (PSO) today, the new rate for jet fuel stood at Rs283.52 per litre. The reduction is expected to lead to a decrease in airline fares across the country.

With this latest cut, the government has reduced the price of jet fuel by a cumulative Rs283 per litre in total. At its peak, amid the war situation in the Middle East, jet fuel had reached a record Rs517 per litre. Before the conflict, the price stood at Rs188 per litre as of February 28.

Revised jet fuel price. Photo: Reporter

In March, the government increased the price of jet fuel for commercial passenger aircraft for the fifth time in 28 days, citing the oil crisis following the conflict between the US, Israel and Iran, pushing rates to a record high.

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A day before the hike, authorities had raised the price by Rs83 per litre, while airlines in Pakistan had already increased fares, citing a shortage of jet fuel and limited oil reserves.

The price of jet fuel was increased by Rs5 per litre, bringing the new price to Rs476.97 per litre.