Petrol down Rs5, diesel Rs2.24 under daily fuel pricing

The federal government has further reduced the prices of petrol and high-speed diesel (HSD), continuing a series of cuts under Pakistan’s daily petroleum pricing mechanism. According to the latest notification issued after federal government approval, the price of petrol has been reduced by Rs5 per litre, bringing the new ex-depot price down to Rs323. 56 per litre from Rs328. 56. The price of high-speed diesel has also been cut by Rs2. 24 per litre, lowering its new ex-depot price to Rs383. 62 per litre from Rs385. 86. The revised prices will take effect from midnight (August 6) and remain in force until the next review under the government’s daily fuel pricing mechanism. The latest reduction follows another cut announced a day earlier, when petrol prices were lowered by Rs3. 39 per litre and HSD by Rs4. 07 per litre. Earlier this week, the government reduced petrol prices by Rs4. 08 per litre and HSD by Rs2. 45 per litre. On August 1, petrol became cheaper by 12 paise per litre, while HSD prices were reduced by 66 paise per litre. The successive reductions reflect fluctuations in international oil prices under Pakistan’s daily fuel pricing regime. Pakistan replaced its weekly petroleum pricing system with a daily mechanism earlier this year. Under the revised framework, the Oil and Gas Regulatory Authority (OGRA) calculates ex-depot prices using a rolling seven-day average of international oil prices, exchange rate movements and other cost components before submitting recommendations to the federal government for approval. Petroleum Minister Ali Pervaiz Malik has said the new pricing mechanism enables domestic fuel prices to reflect changes in global markets more quickly while improving transparency in petroleum pricing. The latest reduction is consistent with softer international crude prices and lower import costs.

Read full story on Aaj English Tv