Business Desk
May 15, 2024
In a major relief for the public, the government on Wednesday slashed the fuel prices by up to Rs15 per litre in line with the recommendations of the Oil and Gas Regulatory Authority (OGRA), according to a notification issued by the finance ministry.
"The prices of Petroleum products have seen a decreasing trend in the international market during the last fortnight. The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market," the notification issued by the Ministry of Finance read.
According to the ministry, the new price of petrol is now Rs273.10 per litre, Rs15.39 down from the previous Rs288.49. Similarly, high-speed diesel (HSD) will be available for Rs274.08 per litre, Rs7.88 down from previous rate of Rs281.96 per litre.
The Finance Divison mentioned that the new prices will be applicable from midnight Wednesday and remain valid for the next fortnight (till May 31). In a statement, the ministry said that the prices of petroleum products had seen a decreasing trend in the international market during the last fortnight.
The price of kerosene and light diesel oil has also been reduced. They added that kerosene price had been reduced by Rs9.86 per litre and the light diesel oil (LDO) by Rs7.54 per litre. However, since these prices had been de-regulated, these were not mention in the ministry notification.
Globally, petrol prices have fallen showing a positive market shift with government and industrial sources saying that Pakistan refineries and oil marketing companies hoped that the consumption of petroleum products will increase from May 16 because of the expected reduction prices and halt in influx of smuggled petroleum products from Iran in the last 10 days.
| Products | Existing price w.e.f 01.05.2024 | New price w.e.f 16.05.2024 | Increase/Decrease |
| MS (Petrol) | Rs288.49 | Rs273.10 | -Rs15.39 |
| High-Speed Diesel (HSD) | Rs281.96 | Rs274.08 | -Rs7.88 |
To recall, the government on May 16 had slashed petrol and diesel prices by Rs5.45 and Rs8.42 per litre, respectively.
Every 15 days, the government examines and modifies petroleum product prices in response to changes in the price of oil globally and in the value of the local currency.
The expected fuel consumption and supply costs of Pakistan State Oil, the state-owned oil corporation, as well as monthly tax targets, would be taken into consideration by the government when determining the prices of petroleum goods.
