Govt announces reduction in petroleum prices

ISLAMABAD: The government has reduced the prices of petroleum products, providing some relief to consumers across the country, ARY News reported on Sunday.

As per the sources, the price of petrol has been cut by Rs 10 per litre, while diesel has seen a reduction of Rs 13.6 per litre.

In addition, the price of light diesel has been lowered by Rs 12 per litre, and kerosene prices have been reduced by Rs 11 to Rs 15 per litre.

These reductions come after Prime Minister Shehbaz Sharif’s approval of the revised prices, according to sources. The new rates are expected to provide some respite to the public amid rising inflation.

The government cut the petroleum price as international oil prices have significantly dropped by 8.5%, plummeting from USD 79.39 per barrel on August 30, 2024, to USD 72.67 per barrel. This development marks a notable shift in the global energy markets.

This decline in petrol prices is largely attributed to the Organization of the Petroleum Exporting Countries (OPEC) revising its global oil demand forecast, leading to reduced demand and subsequent price drops, said Tahir Abbas Head of Research AHL.

As an oil-importing country, Pakistan benefits from this decline, with local fuel prices adjusted fortnightly. Over the last three adjustments, petrol and diesel prices have dropped by PKR 16.50 per litre and PKR 20.88 per litre, respectively, he said.

A fourth consecutive decline in petrol prices is expected today, with petrol and diesel prices projected to decline by PKR 13.12 per litre and PKR 14.39 per litre.