By Staff Reporter
ISLAMABAD: The government has slashed petroleum product prices by up to 2.97 percent for the first half of May, capitalizing on a fall in global oil premium rates, officials said on Tuesday.
The price of petrol has been cut by 1.85 percent or Rs5.45 per liter to Rs288.49 per litre, and high-speed diesel (HSD) by 2.90 percent or Rs8.42 to Rs281.96 per litre. Kerosene oil and light diesel oil (LDO) saw reductions of 4.52 percent or Rs8.74 and 3.23 percent or Rs5.63, with new prices set at Rs184.34 and Rs168.71 per litre, respectively.
The new fuel prices are effective from May 1.
“The prices of petroleum products have seen a decreasing trend in the international market during the last fortnight. Ogra has worked out the consumer prices, based on the price variations in the international market,” a government notification read.
The government is charging Rs 60 per litre on petrol and HSD each.
The premium rate on petrol has decreased by 26.15 percent to $9.60 per barrel, while HSD’s premium remains at $6.50 per barrel.
The government reviews fuel prices every 15 days and adjusts them based on the movements of global oil prices and the exchange rate of the local currency. The rupee is almost flat against the dollar since the last price revision, trading at around 278.31 per dollar on Tuesday.
The government calculates the prices of petroleum products keeping in view monthly tax targets and estimated fuel consumption and supply cost of Pakistan State Oil, the state-owned oil company.
The latest fall in fuel prices came after the government increased the price of petrol in the last fortnightly review. Pakistan, which imports about 85 percent of its oil needs, has been grappling with a balance of payments crisis and soaring inflation, which stood at 20.7 percent on a year-on-year basis in March.
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