Infostani International- The caretaker federal government has implemented changes to fuel prices, specifically lowering the price of petrol by Rs8 per litre, starting from midnight today.
Recent Developments in Fuel Prices and Market Dynamics in Pakistan
The price of petrol has dropped from Rs267.34 to Rs259.34 per litre, while the price of high-speed diesel (HSD) remains constant at Rs276.21 per litre. The decision to maintain the HSD price is justified by an adjustment in the exchange rate at Rs1.50 and a premium of $5.30 per barrel.
The finance ministry, in a statement, emphasized that these changes in Fuel prices align with the recommendations provided by the Oil and Gas Regulatory Authority (Ogra). Various factors, including the petroleum levy (PL), general sales tax (GST), premium, exchange rate, and global oil prices, were considered in the decision-making process.
The reduction in petrol prices is expected to boost consumption, especially amid the ongoing gas crisis in the country. Petrol, serving as an alternative to compressed natural gas (CNG) in vehicles, may see increased usage. On the other hand, the unchanged diesel price, crucial in the transport and agriculture sectors, could contribute to inflation.
Recent Oil Price News: No Changes for Cooking and Industrial Oils, Global Market Trends, and Currency Update
The announcement does not include revisions for kerosene oil (SKO) or light diesel oil (LDO), which were anticipated to witness a decrease of Rs3 and Rs1.50 per litre, respectively. Kerosene oil is widely used for cooking purposes in remote areas of Pakistan, where liquefied petroleum gas (LPG) is not readily available. Similarly, LDO is an essential component in industries.
The decision-making process also took into account global oil market dynamics, with Brent Fuel prices decreasing by $1.5 per barrel from $84.50 to $83 since January 1, 2024. Additionally, the HSD rate experienced a modest reduction of approximately $1 per barrel, falling from $97 to $95.80. It is noteworthy that during this period, the Pakistani rupee gained ground against the US dollar by Rs 3.