Govt reduces petrol price by Rs74, diesel by Rs67 per litre
- Petrol to cost Rs299.50/litre, diesel Rs311.47 after major price cut, PMO says
Pakistan's government has significantly reduced petrol and diesel prices by Rs74 and Rs67 per litre respectively, citing improving economic conditions and declining global oil prices.
- New ex-depot prices for petrol and diesel.
- Reasons for the significant fuel price reduction.
- Government's aim to pass on economic benefits.
Pakistan government announced on Friday a reduction in petroleum prices, slashing petrol by Rs74.28 per litre and diesel by Rs67.31 per litre, in what it described as a move to pass on the benefits of lower global oil prices to consumers.
Following the reduction, the ex-depot price of petrol (Motor Spirit) has been set at Rs299.50 per litre, while high-speed diesel (HSD) will be available at Rs311.47 per litre, according to a notification from the Petroleum Division.
“We are immediately passing on the benefits of improving economic conditions in the region and declining oil prices to the public,” Prime Minister Shehbaz Sharif was quoted as saying in a statement from the Prime Minister’s Office (PMO).
“Through savings generated from the development budget and austerity measures, the federal government utilised Rs129 billion to provide relief and shield people across the country from the full impact of soaring fuel prices.”
There were no shortages, no long queues, and no disruptions in the supply of petroleum products for the public, he maintained.
The prime minister said the government would continue taking “effective measures to maintain economic stability and further reduce inflation”.
Internationally, Brent crude steadied on Friday but held on track for a more than 8% weekly decline, as traders weighed up fading prospects for a lasting US-Iran truce after talks were called off and Israel escalated attacks in Lebanon.
Brent crude futures were up 9 cents, or 0.1%, at $79.94 a barrel by 1226 GMT, but were heading for a second weekly decline.
In the previous review, the government had reduced petrol price by Rs4 per litre to Rs373.78 and diesel price by Rs2 per litre to Rs378.78.
Earlier on Friday, PM Shehbaz Sharif said Iran-US ceasefire and ongoing peace efforts were expected to have a positive impact on the economies of Iran and Pakistan, noting that international oil prices had fallen sharply following the easing of regional tensions.
Addressing the National Assembly, Shehbaz recalled that the government had spent billions to cushion consumers from the impact of higher fuel prices and inflation during the period of regional uncertainty, and announced that a substantial reduction in petroleum prices would be unveiled later in the day.
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