The Govt Reduces Price of Diesel
Staff Report
The federal government on Friday reduced the price of high speed diesel (HSD) by Rs 1.77 per liter effective from March 16, 2024, due to the holy month of Ramadan.
However, it has maintained the current price of petrol for the next fortnight.
After the reduction in the price of high speed diesel (HSD), the new price stands at Rs 285.56 per liter against the old price of Rs 287.33 per liter.
The price of petrol has been maintained at Rs 279.75 per liter.Why the Oil Sector continues to struggle
The high speed diesel is widely used in the transport and agriculture sectors. Therefore reduction in its price may result in posing inflationary impact on the lives of the people.
The petrol is used in motorbikes and cars. This is an alternate to the CNG fuel in the cars.
The transport in Punjab province is using petrol and imported LNG due to a shortage of indigenous gas.
The finance ministry in a statement said that the federal government had decided the prices of petroleum production following the recommendations of oil and gas regulatory authority (Ogra).
It said that new prices will remain effective from March 16-30.
The prices of petroleum products had witnessed a mixed response as the price of petrol had witnessed a hike whereas the prices of other petroleum products had gone down.
The estimates of Oil Marketing Companies (OMCs) based at current government taxes had revealed the slight changes in all four petroleum products due to high premium on petrol and insignificant hike in fuel prices globally. The price of Brent has been around $81 per bbl globally since March 1, 2024.
According to oil industry calculations, the rate of Inland Freight Equalization Margin (IFEM) stood at a rate of Rs 7.01 per liter for petrol and Rs 3.76 per liter for HSD.
The premium is charged on imports of petroleum products. There had been high rate of premium amounting to $12.15 per bbl on petrol from the previous fortnight of $10.48 per bbl or $1.6 per bbl increase.
The premium on HSD amounts to $6.50 per bbl or the same level as the previous fortnight.
Last time the government increased the price of petrol by Rs 4.13 per liter with effect from March 1, 2024, the inter-bank dollar price was Rs 279, which was still Rs 279.
