Government announces reduction in petrol, diesel prices

ISLAMABAD: The federal government has significantly decreased the petrol and diesel prices, announcing the revised rates for the next fortnight, ARY News reported.

As per a notification issued here, the price of petrol has been decreased by Rs0.50 per litre. The new price of petrol has been set at Rs255.63 per litre.

Similarly, the high-speed diesel has also been reduced by Rs5.31 per litre, now priced at Rs258.64 per litre.

Additionally, the price of kerosene oil has also been decreased by Rs3.53 to Rs168.12 per litre.

These changes come as part of regular adjustments in fuel prices, which are influenced by international market trends and local economic conditions.

Meanwhile in international market, the oil prices fell more than 1% on Friday and were headed for their first monthly drop since November, as markets braced for Washington’s new tariffs and Iraq’s decision to resume oil exports from the Kurdistan region.

Uncertainty surrounding OPEC’s production resumption plans in April and ongoing talks to end the war in Ukraine also weighed on investor sentiment.

The more active May Brent crude futures fell 82 cents, or 1.11%, to $72.75 a barrel by 11:57 EST (1657 GMT). U.S. West Texas Intermediate crude futures were at $69.73 a barrel, down 62 cents, or 0.88%.

Earlier, the federal government has planned to deregulate petroleum product prices, a move that has been met with resistance from the Pakistan Petroleum Dealers Association.

In a letter to Minister for Petroleum Musadik Malik, the association expressed concerns that deregulation would lead to an increase in the sale of smuggled Iranian oil and non-standard fuel in the country.

The association argued that deregulation would compromise the investments made by petroleum dealers, who have invested billions in the sector. They emphasized that any decision should be made in consultation with stakeholders, as was previously agreed upon.

Under the proposed plan, oil marketing companies (OMCs) would be allowed to sell fuel at competitive prices, enabling them to increase their market share. A price ceiling would be established to ensure price stability.

Additionally, the government plans to permit oil refineries to blend up to 5% ethanol in petroleum products to reduce fuel costs.

The Pakistan Petroleum Dealers Association has urged the minister to engage in talks with the association to address their concerns.