Petrol price drops by Rs8/liter as Pakistan battles record inflation

Petrol price drops by Rs8/liter as Pakistan battles record inflation

By Staff Reporter

ISLAMABAD: Pakistan cut petrol prices by Rs8 per liter on Wednesday, its second reduction in two weeks, to ease inflation that hit a 59-year high in April after an IMF-backed hike in fuel and energy tariffs.

Finance Minister Ishaq Dar said the price of petrol would drop from Rs270 to Rs262 per liter from June 1, while high-speed diesel and light diesel oil would also be cheaper by Rs5 per liter each. Kerosene oil prices would stay the same.

The country is grappling with inflation that reaches a historic high of 36.4 percent in April 2023, the highest level recorded since 1964.

Just two weeks ago, the government had already reduced the price of petrol by Rs12 per liter, as part of ongoing efforts to mitigate the impact of inflation on its citizens. The country periodically revises petroleum product prices every two weeks.

However, despite these measures, the finance minister acknowledged in a brief video message that the reduction in petrol prices and the improvement of the rupee against the US dollar had been insufficient.

“The maximum reduction we could achieve in the petrol price [two weeks ago] was Rs12 per liter,” Dar said. “Today, by implementing an additional reduction of Rs8 per liter, the total reduction in petrol price will amount to Rs20 per liter. Thus, the price of petrol will decrease from Rs270 per liter to Rs262, effective from June 1.”

In addition to the reduction in petrol prices, the finance minister also announced a decrease in the price of high-speed diesel by Rs5 per liter and light diesel oil by Rs5 per liter. However, the price of kerosene oil will remain unchanged.

Following the latest adjustments, high-speed diesel will cost Rs253 per liter, while kerosene and light diesel oil will be priced at Rs164.07 and Rs147.68 per liter, respectively.

Moreover, since May 16, 2023, Dar revealed that the price of high-speed diesel has been reduced by Rs35 per liter, petrol by Rs20 per liter, kerosene by Rs12 per liter, and light diesel oil by Rs17 per liter.

The government is collecting Rs50 per liter as petroleum levy on petrol and high-speed diesel to meet its budget target.

Pakistan’s oil imports fell 48 percent to 1.07 million tons in April from a year earlier, according to Arif Habib Limited, the country’s largest securities brokerage firm.

Copyright © 2021 Independent Pakistan | All rights reserved

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Petrol price drops by Rs8/liter as Pakistan battles record inflation

By Staff Reporter

ISLAMABAD: Pakistan cut petrol prices by Rs8 per liter on Wednesday, its second reduction in two weeks, to ease inflation that hit a 59-year high in April after an IMF-backed hike in fuel and energy tariffs.

Finance Minister Ishaq Dar said the price of petrol would drop from Rs270 to Rs262 per liter from June 1, while high-speed diesel and light diesel oil would also be cheaper by Rs5 per liter each. Kerosene oil prices would stay the same.

The country is grappling with inflation that reaches a historic high of 36.4 percent in April 2023, the highest level recorded since 1964.

Just two weeks ago, the government had already reduced the price of petrol by Rs12 per liter, as part of ongoing efforts to mitigate the impact of inflation on its citizens. The country periodically revises petroleum product prices every two weeks.

However, despite these measures, the finance minister acknowledged in a brief video message that the reduction in petrol prices and the improvement of the rupee against the US dollar had been insufficient.

“The maximum reduction we could achieve in the petrol price [two weeks ago] was Rs12 per liter,” Dar said. “Today, by implementing an additional reduction of Rs8 per liter, the total reduction in petrol price will amount to Rs20 per liter. Thus, the price of petrol will decrease from Rs270 per liter to Rs262, effective from June 1.”

In addition to the reduction in petrol prices, the finance minister also announced a decrease in the price of high-speed diesel by Rs5 per liter and light diesel oil by Rs5 per liter. However, the price of kerosene oil will remain unchanged.

Following the latest adjustments, high-speed diesel will cost Rs253 per liter, while kerosene and light diesel oil will be priced at Rs164.07 and Rs147.68 per liter, respectively.

Moreover, since May 16, 2023, Dar revealed that the price of high-speed diesel has been reduced by Rs35 per liter, petrol by Rs20 per liter, kerosene by Rs12 per liter, and light diesel oil by Rs17 per liter.

The government is collecting Rs50 per liter as petroleum levy on petrol and high-speed diesel to meet its budget target.

Pakistan’s oil imports fell 48 percent to 1.07 million tons in April from a year earlier, according to Arif Habib Limited, the country’s largest securities brokerage firm.

Copyright © 2021 Independent Pakistan | All rights reserved