ISLAMABAD: For the fifth consecutive fortnight, the government announced on Monday a reduction in the prices of petrol and high-speed diesel (HSD) by Rs2.07 and Rs3.40 per litre, respectively, effective imm­ediately for the next fortnight ending Oct 16, mainly because of a slight decline in the international market.

The government also reduced the prices of light diesel and kerosene by Rs1.03 and Rs3.57 per litre, respectively.

On the other hand, the Oil and Gas Regulatory Authority (Ogra) increa­sed the price of liquid petroleum gas (LPG) by about Rs7.31 per kg or 3pc for the month of Oct­ober. The regulator notified the new price for 11.8kg cylinder at Rs2,965.38 for October compared to Rs2,879.10 in September.

It said the LPG producer price is linked to the Saudi Aramco-CP and US dollar exchange rate. Compared to the previous month, the Saudi Aramco-CP has increased by 3.84pc, while the average dollar exchange rate has slightly decreased by 0.125pc. This combination has resulted in an increase in the LPG consumer price by Rs86.28 per 11.8kg cylinder (2.99pc). The per kg increase in the LPG consumer price is Rs7.31.

In a late night announcement, the Ministry of Finance said Ogra had worked out the consumer prices of petroleum products, based on price variations in the international market. As such, the retail prices of both petrol and diesel would be lower than Rs250 per litre, after almost 18 months.

The ex-depot petrol price was cut to Rs247.03 per litre for the next fortnight from Rs249.10, down by 0.8pc (Rs2.07 per litre). In the retail market, petrol would, however, be available at around Rs248-248.50 per litre, varying from city to city.

The ex-depot price of high-speed diesel (HSD) was reduced by Rs3.40 (1.36pc) to Rs246.29 per litre from Rs249.69. However, this too would not be available in the market below Rs247.50 per litre.

However, the decline in petroleum prices is rarely reflected in fares and the prices of essential commodities. Finance Minister Muhammad Aurangzeb has urged the provincial governments to take an active role in this matter through price monitoring committees to help reduce transport fares and the prices of other goods.

The government also announced a Rs3.57 per litre cut in the price of kerosene to Rs154.90, down by 2.2pc, and a Rs1.02 reduction in the price of light diesel to Rs140.90, down by 0.7pc.

Informed sources said the average price decline in petrol and HSD remained around $1 per barrel in the last fortnight.

In the last pricing review effective Sept 16, the government had reduced the prices of petrol and HSD by Rs10 and Rs13 per litre, respectively. Therefore, the total reduction in their prices over the past five fortnights has reached Rs28.57 and Rs36.34 per litre, respectively.

The prices of petrol and HSD had witnessed an increase of Rs17.44 and Rs15.74 per litre, respectively, in the month of July. Earlier between May 1 and June 15, the prices of both petrol and HSD had declined by about Rs35 and Rs22 per litre, respectively.

Published in Dawn, October 1st, 2024