ISLAMABAD:
A further decline in oil prices is a sigh of relief for people in the country, following a continued sharp slash in the value of Brent crude in the international markets, which will take effect from today (Dec 1).
The Oil and Gas Regulatory Authority (Ogra) issued a notification on Sunday.
Following the cuts, the price of High Speed Diesel (HSD), which is widely used in heavy vehicles and the agriculture sector, has been slashed by Rs7.12 per litre. Its price has come down to Rs94.09 per litre from Rs101.21 per litre.
Similarly, the price of petrol witnessed a decline of Rs9.66 per litre against its current price of Rs94.19 per litre which is now pegged at Rs84.53. Kerosene oil, which is used as kitchen fuel in remote areas of the country, recorded a decrease of Rs4.34 per litre. Its price has fallen from Rs87.52 per litre to Rs83.18 per litre.
The price of High Octane Blending Component (HOBC), which is used in luxury cars, registered a drop of Rs10.18, bringing its price down to Rs106.27 per litre from Rs116.4 per litre. The price of light diesel oil was slashed by Rs5.39 per litre dragging its price down to Rs77.98 per litre from Rs83.37 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.
According to experts, the prices will further come down in coming months as the cartel of oil exporting countries Opec did not make any cut in production to stabilise prices.
The surge of US shale oil in global market has managed to shake the cartel of oil exporting countries which decided to continue existing oil supplies, fearing that they would lose market share in case of any cut in oil supplies.
Published in The Express Tribune, December 1st, 2014.
COMMENTS (7)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
Crude oil reduced by 56‰. Corresponding petrol prices should be Rs. 49/ltr. Govt over charging by 70%at current rate of Rs 84/ltr
per barrol cost is 66$. in PKR per Liter cost comes out to be approx. 43 Rs. if we add cost of refining, import cost, per liter cost wouldnt be more than 50 Rs. still Govt. is fetching 34 Rs. from people of pakistan. what to say?
How Ironic. The cartel dominated by our very brotherly Muslim country is forced to cut down prices by a very non-brotherly non Muslim country!
About CNG, CNG rate also depends upon Oil rate, when CNG rate will reduced
Relief, the nawaz shariff govt sat on the oil prices for weeks helping other fill there pockets and in return fill his, this price should have been in place when they reduced the price the first time.
This is not relief merely a reflection of tumbling crude prices.
The relief will be when NS stops pretending being our representative and goes home for good.
Its NOT a relief, its international oil market talking.