Pakistani Government Reduces Petroleum Product Prices

The federal government of Pakistan has announced a reduction in the prices of petroleum products, with cuts of up to Rs8 per litre.

Finance Minister Ishaq Dar made the announcement in a televised address, stating that the price of petrol would be decreased to Rs262 per litre after an Rs8 cut, while the new price of diesel would be Rs253 per litre following a reduction of Rs5.

These revised prices will go into effect from 12 am tonight and will remain unchanged for the next two weeks.

Minister Dar highlighted that the cumulative decrease in petrol and diesel prices for the month of May amounts to Rs20 and Rs35 per litre, respectively.

The government’s decision comes as a response to mounting pressure due to the previous record-high petrol prices, reaching Rs282 per litre earlier this year, as well as the region’s highest inflation rate.

While the recent decline in global oil prices has provided some relief, the government continues to face challenges in maintaining lower prices as the value of the rupee depreciates.

Initially, oil marketing companies (OMCs) had estimated a potential decrease of Rs5 per litre for both petrol and diesel. However, sources suggested that the government might have considered maintaining the prices of petroleum products due to the rupee’s depreciation.

The reduction in petroleum product prices aims to alleviate the burden on consumers and address concerns related to inflation. However, the government will need to closely monitor the global oil market and currency exchange rates to ensure stability in the pricing of these essential commodities.