ISLAMABAD:
The government announced on Monday a reduction in petrol prices by Rs2.07 per litre, effective from October 1, 2024. Additionally, the price of high-speed diesel (HSD) has been lowered by Rs3.40 per litre.
The price of light diesel has also dropped by Rs1.03 per litre, while kerosene oil has seen a decrease of Rs3.57 per litre.
As a result, the new petrol price has been reduced from Rs249.10 per litre to Rs246.29 per litre. Kerosene oil is now priced at Rs154.90 per litre, down from Rs158.47 per litre, and the new price of light diesel oil is Rs140.90 per litre, compared to the previous Rs141.93 per litre.
Currently, the government is levying Rs60 per litre of petroleum levy on both petrol and high-speed diesel.
In a statement, the information ministry noted that petrol prices have been reduced by Rs28.57 per litre and high-speed diesel by Rs37.51 per litre over the past two months, following the prime minister’s directives.
Petrol, widely used in motorbikes and cars, will offer some financial relief to consumers with the price cut. High-speed diesel, which plays a crucial role in the transport and agriculture sectors, will also ease inflationary pressures on consumers with its reduced price.
Kerosene oil, used for cooking in northern regions where LPG is unavailable and primarily consumed by the Pakistan Army, has also become more affordable. Light diesel oil, commonly used in the industrial sector, saw a price reduction as well.
Under Prime Minister Shehbaz Sharif’s orders, the reduction in petroleum product prices is being passed on to the public. The finance division had briefed the prime minister, explaining that international petroleum prices have fluctuated in the past fortnight, necessitating adjustments to domestic consumer prices.
The Oil and Gas Regulatory Authority (OGRA) calculates consumer prices for the upcoming fortnight, based on international market trends and exchange rate variations. Following this, OGRA proposed a reduction in prices for the next fortnight. These suggestions were reviewed by the Ministry of Energy (Petroleum Division) and OGRA, and then submitted to the prime minister for approval.
LPG Price Increase
Meanwhile, OGRA has increased the price of liquefied petroleum gas (LPG) by Rs7.31 per kg, also effective from October 1, 2024. The notification indicated that both producer and consumer prices have risen compared to September 2024.
According to OGRA, the LPG producer price is tied to Saudi Aramco’s contract price (CP) and the US dollar exchange rate. The Saudi Aramco-CP saw a 3.84% increase compared to last month, while the average dollar exchange rate decreased slightly by 0.125%, resulting in an increase of Rs86.28 per 11.8 kg cylinder (2.99%) in consumer prices. The price per kilogram has increased by Rs7.31.
For October, the LPG producer price has been set at Rs210,003.79 per ton, up by Rs7,312.04 from last month’s Rs202,691.77 per ton.
On a per-cylinder basis (11.8 kg), the producer price has risen from Rs2,391.76 in September to Rs2,478.04, an increase of Rs86.28.
The consumer price for LPG in October has also been revised upward, with the notified consumer price now at Rs251,303.79 per ton, compared to Rs243,991.77 per ton in September.
This translates to an Rs86.28 increase for a standard 11.8 kg cylinder, raising the price from Rs2,879.10 to Rs2,965.38.
This price hike comes as demand for LPG is expected to rise with the approach of winter, affecting households and businesses that rely on LPG for heating and cooking purposes.
