On Tuesday, the federal government of Pakistan announced a reduction in petrol and high-speed diesel (HSD) prices by Rs 5.45 and Rs 8.42 per litre, respectively, taking effect from May 1. The reason for the price cuts is the decline in international oil prices.
The Finance Ministry confirmed that these revisions align with the recommendations of the fuel regulator, the Oil and Gas Regulatory Authority (OGRA). The new petrol price is Rs 288.49 per litre, while the cost of HSD has been revised to Rs 281.96 per litre. This reduction in petrol prices is expected to increase its consumption, particularly given the ongoing gas crisis in the country. The reduction in petrol prices may result in a surge in its usage as an alternative to compressed natural gas (CNG) in vehicles.
Moreover, the price of kerosene oil has been reduced by Rs 8.74 per litre, while the tariff of light diesel oil (LDO) has been slashed by Rs 5.63 per litre. Kerosene oil is extensively used in stoves in remote areas where liquefied petroleum gas (LPG) is not readily available, while LDO is an essential component in industries. In the previous fortnightly review of petroleum prices on April 15, the federal government had raised the price of petrol by Rs 4.53 per litre, and the price of HSD was increased by Rs 8.14 per litre.
