ISLAMABAD: The government on Tuesday cut prices of key petroleum products petrol and high speed diesel (HSD) by around Rs8.47 and Rs6.70 per litre, respectively, for the second consecutive week with immediate effect for the two weeks ending August 31, mainly citing lower prices in the international market.
The announcement of the price cuts was brought forward by two days on the instructions of Prime Minister Shehbaz Sharif, who wanted to give the nation an “Independence Day gift”, said an official who was told to work from home along with others to ensure the move went smoothly. The prime minister, who was in Lahore, ensured that the price cuts were announced immediately, despite advice to the contrary from the finance ministry and the Oil and Gas Regulatory Authority (Ogra).
In a late night announcement, the Finance Ministry said Ogra calculated consumer rates based on price fluctuations in the international market.
The pump price of petrol for the next 18 days has been reduced to Rs 260.96 per litre from Rs 269.43, a reduction of 2.8 per cent or Rs 8.47 per litre. However, petrol will be available at around Rs 272 per litre in the retail market.
Petrol is mainly used for personal transport, small vehicles, rickshaws and two-wheelers and directly impacts the budgets of the middle and lower middle classes.
The outbound price of HSD has come down by Rs 6.70 (2.45%) to Rs 266.07 per litre from Rs 272.77 in the last two weeks. Most of the transport sector runs on HSD. HSD is used mainly in heavy transport vehicles, trains, trucks, buses, tractors, tube wells, agricultural engines like threshers etc and its price is considered to be a source of inflation as it pushes up the prices of vegetables and other food items in particular.
Officials said gasoline and HSD prices in the international market have fallen by more than $3 per barrel in the past two weeks.
Published in Dawn on August 14, 2024
