Government to slash petrol prices today: Miftah Ismail

  • Finance minister says public has stood with the government during difficult times and bore the burden of inflation and now we want to provide relief
Published July 14, 2022

Finance Minister Miftah Ismail said on Thursday that the government will slash domestic petrol prices before midnight and that Prime Minister Shehbaz Sharif has received a summary from the Oil and Gas Regulatory Authority (Ogra) recommending the cut.

Speaking to media, he stressed that the International Monetary Fund (IMF) had no objections with the government’s move - the announcement comes on the same day as the IMF said it had reached a staff-level agreement with Pakistan for conclusion of the combined seventh and eighth reviews of the Extended Fund Facility, with the agreement now subject to approval of the Executive Board.

He also said that the government would not wait for 15 July, and cut oil prices today (14 July).

“PM Shehbaz wants to announce immediate relief to the people of Pakistan,” he said. “The public stood with the government during difficult times and bore the burden of inflation and now we want to provide relief.”

In its summary, Ogra recommended a Rs18-per-litre cut in the price of petrol and over Rs20 per litre reduction in diesel prices.

Petrol prices in Pakistan: what are the components, and how have they behaved

The decision to cut the prices of petroleum product comes as international oil price have dropped significantly over the past few days.

Oil prices fell on Thursday as investors focused on the prospect of a large US rate hike that could stem inflation but at the same time hit oil demand.

15pc cut in oil prices recommended

Brent crude futures for September were down $1.86 cents to $97.71 a barrel at 1016 GMT after settling below $100 for a second straight session on Wednesday.

US West Texas Intermediate crude for August delivery was at $94.01 a barrel, down $2.29 cents.

Govt jacks up petrol prices by another Rs14.85 per litre, takes price to Rs248.74

On June 30, the government announced a hike in the prices of petroleum products for a fourth time since end-May and lifted the new ex-depot price of petrol to Rs248.74 per litre (after a hike of Rs14.85), and diesel to Rs276.54 (after a hike of Rs13.23).

The revised rates went into effect from 1 July. In the pricing structure, a petroleum levy of Rs10 was imposed on petrol and a levy of Rs5 had been added to the per-litre prices of high speed diesel, kerosene, and light diesel oil.


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samir sardana Jul 14, 2022 09:16pm
Brent will be back to 100 USD,in 48 hours This oil fall is due to the Fed Rate Hike expectation, and USD rise. Like last time,JUST before and after the rate hikes, the DJIA crashed,and oil corrected - the same again.Only that this time ,t is more PRONOUNCED,as the MARKET FEELS THAT THE US FED will RISK A RECESSION,TO KILL INFLATION. After Rate Hike,Oil will move up again,and even before that,Brent will cross 100 USD,easily. SS will cut oil 2 days before elections,on 17th, as it is a wager,on the POLLS. Since the GOP is cutting rates,after 4-5 days of a fall,so when Brent moves up - it will again wait for a few days, to hike.So SS has created a Oil Price Buffer ,to play with and Oil has fallen JUST BEFORE THE 17TH ! PROVIDENCE ? dindooohindoo
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samir sardana Jul 15, 2022 08:39am
As I said Below,Brent is trading at 100 .25 USD (as of last night NYMEX close !) WITHOUT DEMAND DESTRUCTION, OIL will not dip Markets are expecting a GARGANTUAN RATE HIKE by the FED - and that will also,NOT happen Chinese Growth has stalled - but that is due to COVID and the STATE LOCKDOWN IN SHANGHAI etc
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