Petrol Price Down Rs 8 Per Liter, Diesel Kept Unchanged
Staff Report
The caretaker government has reduced the petrol price by Rs 8 per liter, effective from January 16, 2024.
However, the price of diesel remains unchanged for the next fortnight. Petrol prices have been lowered from Rs 267.34 to Rs 259.34 per liter, while the price of high-speed diesel (HSD) remains steady at Rs 276.21 per liter.
The HSD price was maintained by adjusting the exchange rate to Rs 1.50 and the premium to $5.30 per barrel.
The Finance Ministry stated that this revision in oil prices was made following the recommendations of the Oil and Gas Regulatory Authority (Ogra).
Petrol, used in motorbikes and cars, is considered an alternative to CNG for vehicles. With the country in the grips of a gas crisis and rising demand from domestic consumers, petrol consumption is expected to increase.
Diesel, widely used in the transport and agriculture sectors, plays a significant role in influencing inflation in the country. However, the government has kept its price unchanged, which means the majority of the population will not see any positive impact in their lives.
The price of kerosene oil (SKO) was expected to decrease by Rs 3 per liter, and light diesel oil (LDO) by Rs 1.50 per liter. Yet, the government has not announced any revisions in the prices of these products.
LDO is used in the industry, while kerosene oil is used for cooking in remote areas of Pakistan, such as the northern regions where liquefied petroleum gas (LPG) is unavailable.
The Pakistan army, also a significant user of kerosene oil in the northern part of the country, uses it for cooking and heating.Ogra Proposes imprisonment up to 10 Years for Illegal Oil Storage and Sale
The decision to revise oil prices was based on factors such as the petroleum levy (PL), general sales tax (GST), premium, exchange rate, and global oil prices.
The price of Brent Oil dropped by $1.5 per barrel, from $84.50 to $83, since January 1, 2024, while the HSD rate became cheaper by around $1 per barrel, decreasing from $97 to $95.80. Additionally, the Pakistani rupee has strengthened against the US dollar by Rs 3.
