ISLAMABAD: The federal government is set to reduce the prices of petrol and high-speed diesel (HSD) by a substantial margin.

Effective from August 1, 2024, the price of petrol is expected to decrease by Rs6 per liter, while HSD will become cheaper by Rs11.50 per liter, according to estimates of oil marketing companies (OMCs).

Additionally, kerosene oil and light diesel oil (LDO) are also in line for price cuts of Rs6.10 per liter and Rs5.50 per liter, respectively.

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The expected lower fuel prices come on the back of a decline in international oil prices.

Over the past two weeks, the average price of petrol has dropped to $87.50 per barrel from $89.50, while HSD has decreased from $96.93 to $94 per barrel.

Furthermore, the import premium on both petrol and diesel has also witnessed a reduction. This combination of factors has enabled the government to pass on the benefit to consumers through lower fuel prices.

The new price of petrol is projected to be Rs269.60 per liter, down from the current Rs275.60.

Similarly, HSD is expected to be priced at Rs272.13 per liter compared to the existing Rs283.63. Kerosene oil will likely be available at Rs177.61 per liter instead of Rs183.71, and LDO will be sold at Rs160.75 per liter, a decrease from the current Rs166.25.

These are projected prices, and the final announcement will be made by the government on the recommendations of Oil and Gas Regulatory Authority (OGRA).

The reduction in fuel prices comes as a significant relief to the public, especially after the recent sharp increases in prices over the past two fortnights.

Copyright Business Recorder, 2024