ISLAMABAD: The federal government announced a significant reduction in petroleum product prices, up to Rs 8.74 per litre, for the fortnight starting May 1, 2024. This decision comes in response to a decline in international oil prices and premium rates observed over the past two weeks.

According to the Finance Division, the federal government has opted to decrease the price of petrol by Rs 5.45 per litre and high-speed diesel (HSD) by Rs 8.42 per litre in the petroleum price review for May 1-15, 2024. Additionally, the rate of kerosene oil has been slashed by Rs 8.74 per litre, and light diesel oil (LDO) by Rs 5.63 per litre.

The premium rate on petrol has dropped to $9.60 per barrel from $13 per barrel, while HSD remains unchanged at $6.50 per barrel.

Petrol price hiked by Rs4.53, diesel’s by Rs8.14

The government is imposing a petroleum levy (PL) of Rs 60 per litre on petrol and HSD but has maintained the general sales tax (GST) at zero.

The Oil and Gas Regulatory Authority (OGRA) submitted its recommendations to the Finance Division for petroleum product prices on April 30, 2024, for consideration. As a result, the new price of petrol is Rs 288.49 instead of Rs 293.94 per litre, and the new price of HSD will be Rs 281.96, down from Rs 290.38 per litre.

The price of kerosene oil has also decreased from Rs 193.08 to Rs 184.34 per litre, and the LDO price is now fixed at Rs 168.71 from Rs 174.34 per litre.

In the last fortnightly review of petroleum prices on April 15, the federal government raised the price of petrol by Rs 4.53 per litre, and the price of HSD was increased by Rs 8.14 per litre.

Copyright Business Recorder, 2024