Sighs of relief: Oil prices lowered by 5.3 per cent

The move to lower oil prices came soon after the prime minister approved a summary moved by the Oil and Gas Regulatory Authority (Ogra).

ISLAMABAD: 

Consumers heaved a sigh of relief on Monday after the government slashed prices of petroleum products by 5.3 per cent in line with the dollar’s depreciation against the rupee. The new rates will be effective from April 1 (today).

The move to lower oil prices came soon after the prime minister approved a summary moved by the Oil and Gas Regulatory Authority (Ogra).

According to a notification issued by the regulator the price of High Speed Diesel (HSD) – which is widely used in heavy transport vehicles and the agriculture sector, has been cut by Rs2.90 per litre (2.5 per cent) bringing it down to Rs 113.85 against an earlier price of Rs 116.75 per litre.

Whereas the price of High octane blending component (HOBC), a fuel mostly used in luxury and high performance vehicles has been sliced to Rs136.57 against an earlier price of Rs 141.23. Similalry, the price of petrol has now come down by Rs1.72 (1.6 per cent) to Rs 108.31 per litre against the current Rs110.03 per litre.

In a move aimed at minimising the reliance on petrol and reducing the oil import bill, the PML-N led government announced uninterrupted provision of compressed natural gas (CNG) from 10 am to 4 pm on daily basis in Punjab from Tuesday (today).

Apart from farmers and transporters, the reduction in the price of petroleum products is expected to have a favourable effect on the country’s spiralling inflation.  “If the government is able to force the transporters to cut fares, it will also bring down inflation,” an official said speaking on condition on anonymity.

Kerosene oil, which is used for cooking purposes in remote areas where liquefied petroleum gas (LPG) is not readily available, recorded a substantial decrease of Rs 5.61 per litre (5.3 per cent), standing at Rs 101.15 against the existing price of 106.76 per litre.

The price of light diesel oil, consumed mainly by industrial units, has also been reduced by Rs 5.16 (5.1 per cent), reaching Rs 95.06 compared to price of 100.22 per litre.

Consumers of high octane blending component, used mainly in luxury vehicles, saw a reduction of Rs 4.66 (3.3 per cent) to Rs 136.57 per litre compared to Rs 141.23 per litre on March 1.

Separately, Prime Minister Nawaz Sharif has also written a letter to the provincial chief ministers following the reduction in petroleum prices, crediting the appreciation of Pakistani rupee vis-à-vis dollar, marking a 5 per cent decrease in import costs.

In his letter, the premier said that it is high time to pass on benefits of cheaper imports and cheaper cost of transportation to the consumers. People expect lower fares for urban and inter-city transport, stated Prime Minister Nawaz.

The premier further said that “We expect lower prices of essential commodities due to lower transportation costs. I expect your personal interest and strong follow-up for immediate relief to the people of Pakistan”.