Petrol price ‘likely’ to be slashed by up to Rs9 per litre

KARACHI  (HRNW)  In a positive development for inflation-hit masses, the federal government could likely reduce the petrol price by up to Rs9 per litre from June 16, sources told News Channel on Thursday.

The price of diesel is expected to be reduced by Rs4 per litre, whereas kerosene oil rates are likely to be dropped by Rs2 per litre, the oil marketing companies (OMCs) sources added.

The final price will be calculated by the Oil and Gas Regulatory Authority (Ogra) and will be based on global petroleum rates on June 13 and 14.

The country fixes fuel prices on a fortnightly basis after evaluating fluctuating international energy market costs and the rupee-dollar parity to transfer the impact on domestic consumers.

About 85% of Pakistan’s oil needs are imported, and the country has been struggling with a balance of payments problem and skyrocketing inflation.

If approved, the price of petrol would come down to Rs259.36 per litre from the current rate of Rs268.36 per litre. Meanwhile, high-speed diesel will be sold at Rs266.22 compared to the existing price of Rs270.22 per litre.

The federal government had reduced petrol and diesel prices by Rs4.74 and Rs3.86, respectively on May 31.

Meanwhile, the government has proposed increasing the petroleum development levy (PDL) from Rs60 to Rs80 for the next fiscal year, starting July 1. Finance Minister Muhammad Aurangzeb has said it would not be hiked in one go and would be gradual.