By Staff Reporter
ISLAMABAD: The government is likely to cut the price of petrol from Feb. 1 but raise rates for high-speed diesel and other fuels, industry sources said on Thursday, as authorities prepare to announce the latest fortnightly adjustment amid fluctuating global oil markets.
The price of petrol is expected to fall by 0.36 rupees per litre, according to initial estimates from the sources, who spoke on condition of anonymity because they were not authorised to discuss the matter publicly.
In contrast, high-speed diesel rates are set to rise by Rs9.47 per litre, with kerosene oil increasing by Rs3.69 per litre and light diesel surging by Rs6.95 per litre, the sources added.
The Oil and Gas Regulatory Authority (OGRA) is due to submit its calculations on petroleum prices to the Petroleum Division on Jan. 30, after which the Ministry of Finance will finalise the rates following consultations with Prime Minister Shehbaz Sharif.
In the previous review on Jan. 15, the government opted to hold petrol and high-speed diesel prices steady at Rs253.17 and Rs257.08 per litre, respectively, through the end of January. That decision came despite potential for reductions, as authorities offset any relief by hiking the petroleum levy by Rs4.62 per litre on petrol and Rs0.80 on high-speed diesel.
Petrol is primarily consumed by commuters in small cars, rickshaws and motorcycles, making price changes a key factor in household budgets for middle- and lower-middle-income families who depend on it for everyday transport. High-speed diesel, meanwhile, powers much of the country’s transport sector, including heavy trucks, buses, trains and agricultural equipment like tractors, tube wells and threshers. Its cost is viewed as a driver of inflation, given its role in hauling goods, which in turn affects prices for vegetables and other essential food items.
Pakistan has been grappling with high fuel costs in recent years, exacerbated by global crude oil volatility and domestic fiscal pressures, including efforts to boost revenue through levies to meet international lender requirements.
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