ISLAMABAD: The federal government on Wednesday announced to slash the prices of petrol and high-speed diesel (HSD) by a substantial margin for the fortnight starting from August 1.

The price of petrol has decreased by Rs6.17 per litre, while HSD became cheaper by Rs10.86 per litre, according to Finance Division statement.

Oil and Gas Regulatory Authority (OGRA) worked out the consumer prices of petroleum products, based on the price variations in the international market.

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 at Rs269.43 per litre, down from the current Rs275.60.

Similarly, HSD is priced at Rs272.77 per litre compared to the previous price of Rs283.63.

The kerosene price was reduced by Rs6.32 per litre which reduced its price to Rs177.39 from Rs183.71 per litre.

Subsequently, the light diesel oil (LDO) rate was decreased to Rs160.53 per litre as opposed to the current rate of Rs166.25 per litre following a cut of Rs5.72 per litre.

The government is charging Rs 60 per litre petroleum levy (PL) on petrol and HSD, whereas exempted from general sale tax.

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