The federal government has announced a reduction in petrol and diesel prices for the next fortnight, providing relief to consumers after three consecutive price hikes.
A press release from the Finance Division said the decision was taken after the Oil and Gas Regulatory Authority reviewed and adjusted consumer prices for petroleum products in view of recent fluctuations in the international oil market.
The development takes place after Pakistan increased the price of petrol by Rs1 per liter on Feb. 1. After the latest decline, the price of petrol has been fixed at Rs256.13 per liter while that of diesel has been set to Rs263.95 per liter.
A press release from the Finance Division said the decision was taken after the Oil and Gas Regulatory Authority reviewed and adjusted consumer prices for petroleum products in view of recent fluctuations in the international oil market.
It said the new petrol price was Rs256.13 and that of HSD Rs263.95. Other petroleum products have also seen price cuts. The price of light diesel has been reduced by Rs5.25 per litre, now standing at Rs155.81 per litre. Meanwhile, kerosene oil has seen a reduction of Rs3.20 per litre, bringing its new price to Rs171.65 per litre.
Fuel prices in Pakistan are reviewed and adjusted fortnightly, based on fluctuations in international energy markets and the rupee-dollar exchange rate. However, Fuel price increases typically push consumer prices higher across sectors, causing economic strain and fueling popular resentment among the masses.
Global Decline in Oil Prices :
The estimates for higher prices of petroleum products stemmed from a decline in the international market. The benchmark Brent prices decreased by $2 per barrel last fortnight. These sources had said the average prices of HSD decreased by around $3 per barrel in the international market while that of petrol dropped by about 90 cents per barrel last fortnight. However, the Import premium on petrol fell by $1 $7.75 per barrel from $8.8 while it remained unchanged on diesel. The reason behind oil prices decline In the international market, is the peace agreement between Russia and Ukraine, which could potentially ease global supply disruptions.