By Staff Reporter
KARACHI: The caretaker government lowered the price of petrol by Rs8 per liter for the next two weeks, as the country grapples with a severe gas shortage that has disrupted power supplies and industries.
The finance ministry said in a statement on Monday that the new price of petrol will be Rs259.34 per liter, down from Rs267.34, effective from Jan. 16. The price of high-speed diesel, the most widely used fuel in the country, was kept unchanged at Rs276.21 per liter.
The decision was based on the recommendations of the Oil and Gas Regulatory Authority, which monitors the global oil prices and the exchange rate of the rupee against the dollar.
The ministry said the government is absorbing the impact of higher oil prices and exchange rate fluctuations by adjusting the petroleum levy and the general sales tax on fuel products.
The price cut may boost the demand for petrol, which is used as a substitute for compressed natural gas in vehicles. Pakistan is facing a severe gas crisis that has affected millions of households and businesses, forcing the government to ration supplies and import liquefied natural gas.
The government has blamed the gas shortage on low pressure in pipelines, depleting reserves, and theft.
The price of diesel, which is used in the transport and agriculture sectors, remains a key driver of inflation, which surged to 29.7 percent in December, the highest level in more than a decade.
The government has imposed a maximum petroleum levy of Rs60 per liter on both petrol and diesel, as part of its revenue collection target under an International Monetary Fund program.
The government did not revise the prices of kerosene oil and light diesel oil, which are used for cooking and industrial purposes, respectively.
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