ISLAMABAD, July 29: The federal government has announced a reduction in the petrol price while increasing the rate of high-speed diesel for the next fortnight, ARY News reported.
According to a notification issued by the Petroleum Division, the petrol price has been reduced by Rs0.75 per litre, bringing the new petrol price to Rs336.06 per litre.
Meanwhile, the government has increased the high-speed diesel (HSD) price by Rs2.24 per litre. Following the revision, the new diesel rate has been fixed at Rs390.62 per litre.
The revised fuel prices will come into effect from 12:00 am on July 30 and will remain applicable until the next fortnightly review.
The government reviews petroleum prices every two weeks based on fluctuations in international oil prices and the exchange rate, with final approval granted after recommendations from the relevant authorities.
The latest revision comes as petrol users receive a slight relief, while transporters and industries dependent on diesel are expected to face higher fuel costs due to the increase in the diesel rate.
Earlier, the Pakistan government had approved a new oil refining policy aimed at reducing Pakistan’s reliance on imported fuel and increasing domestic production of petrol and diesel.
The policy is expected to pave the way for around $6 billion in investment in the country’s refining sector. It was developed in consultation with relevant stakeholders, including the Special Investment Facilitation Council (SIFC).
The new framework is designed to modernise ageing refineries, increase the production of petrol and high-speed diesel, significantly reduce furnace oil output, and improve overall fuel quality.
The government believes the policy will strengthen Pakistan’s energy security. To support the production of Euro 5-compliant fuel, refineries will be offered a seven-year incentive package.
Refinery operators will also be required to sign implementation agreements with the Oil and Gas Regulatory Authority (OGRA) within 90 days of the policy’s approval.
The policy includes measures to attract international investment into Pakistan’s refining industry. It also provides protection for refineries against future changes to taxation, environmental legislation and foreign exchange regulations.
Refineries will be allowed to open foreign currency accounts to service external debt obligations. They will also be required to maintain strategic crude oil reserves equivalent to 14 days’ supply.
Refineries that rely on imported crude oil will be required to maintain an additional five-day reserve. Existing refinery operators will have to give up the previous incentive package in order to qualify for the new one.
The policy recommends that no punitive action be taken against refineries that fail to complete their upgrade projects within the prescribed timeframe. It also proposes a 10 per cent regulatory duty on imported petrol and diesel.