In a positive development for inflation-stricken citizens, the federal government is likely to reduce petrol prices by up to Rs9 per litre starting June 16.
According to oil marketing companies (OMCs) sources, the price of diesel is expected to be lowered by Rs4 per litre, while kerosene oil rates could see a reduction of Rs2 per litre. The final pricing will be determined by the Oil and Gas Regulatory Authority (OGRA) based on global petroleum rates observed on June 13 and 14.
Pakistan adjusts fuel prices on a fortnightly basis, taking into account the fluctuating international energy market and the rupee-dollar exchange rate to reflect these changes in domestic fuel costs.
As approximately 85% of Pakistan’s oil is imported, the country has been grappling with a balance of payments crisis and soaring inflation. The potential reduction in fuel prices offers a brief respite to the inflation-hit populace.
If the proposed reductions are approved, the price of petrol will decrease from Rs268.36 per litre to Rs259.36 per litre. Similarly, high-speed diesel will be priced at Rs266.22 per litre, down from the current Rs270.22 per litre.
This anticipated reduction follows a recent price cut on May 31, when the federal government reduced petrol and diesel prices by Rs4.74 and Rs3.86 per litre, respectively.
In a related development, the government has proposed an increase in the petroleum development levy (PDL) from Rs60 to Rs80 for the upcoming fiscal year, beginning July 1. However, Finance Minister Muhammad Aurangzeb has assured that the hike will be implemented gradually, rather than in a single adjustment.
This step aims to balance fiscal needs while attempting to mitigate the impact on consumers already burdened by high living costs.
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