ISLAMABAD, June 28: The government is likely to reduce prices of petroleum products for the next fortnight (from July 1) because of declining crude prices in the international market.

Calculations made by the Oil and Gas Regulatory Authority (Ogra) for the July 1-15 fortnight suggest that the price of petrol will be reduced by Rs5.02 to Rs84.49 per litre from Rs89.51. A summary sent by Ogra to the petroleum ministry on Thursday said the government had a cushion to reduce prices in the range of Rs2.48 to Rs6.44 per litre.

Sources in the petroleum ministry said the maximum reduction of Rs6.44 per litre had been proposed for HOBC (high octane blending component) — from Rs113.32 to Rs106.88 per litre.

The price of high speed diesel (HSD) used by heavy-duty generators and transport vehicles is set to come down by Rs2.48 to Rs97.21 per litre, and that of kerosene by Rs2.54 to Rs86.25 and of light diesel by Rs2.86 to Rs83.71 per litre. Light diesel is used in motors and pumps, mainly in rural areas.

The prices of aviation fuel will also be reduced — JP-1 will be cheaper by Rs2.48 to Rs75.95 per litre, JP-4 by Rs3.46 to Rs66.24 and JP-8 by Rs2.48 to Rs75.63 per litre.

Consumers, however, may again face a shortage of fuel on June 29 and 30 as they did on June 14-15 when a price reduction was announced.

“The problem is that people rarely buy fuel when prices are likely to decline in two to three days,” said Chaudhry Zafar Elahi, chairman (northern zone) of the Petroleum Dealers Association. “Pump owners continue to keep some fuel stock but at the same time they also prefer to buy products after the prices decline.”

Oil companies are of the opinion that the situation will stabilise in a few fortnights. “We too face delivery issues due to sudden rush after a decline in prices, but the situation will normalise in coming fortnights,” said a PSO official.