PM cuts petrol price by Rs8.48 per litre, CNG by Rs7 per kg

Petrol to sell at Rs62.77and HSD at Rs71.12 per litre;
Ogra’s proposal to hike kerosene price by Rs1.66 per litre rejected; transporters directed to cut fares

ISLAMABAD: Prime Minister Muhammad Nawaz Sharif on Monday announced a major reduction in the prices of petroleum products, bringing huge relief to the masses.

The price of petrol was cut by Rs8.48 per litre, high speed diesel by Rs4.67, light diesel oil by Rs1.97 and high octane by Rs1.97.

After reduction, petrol will sell at Rs62.77 per litre and HSD at Rs71.12 per litre. The prime minister also announced to maintain the price of kerosene by rejecting a proposal of the Oil and Gas Regulatory Authority (Ogra) to increase the same by Rs1.66 per litre. 

The prime minister has also directed transporters to reduce fares so that the common man gets the benefit. The Oil and Gas Regulatory Authority (Ogra) on Friday recommended up to a 12 per cent reduction in the prices of all petroleum products except kerosene for March.

In a summary sent to the government, the authority said oil prices had registered a substantial reduction on the international market in February and the benefit of this reduction in prices must pass on to consumers.

In its working paper, the Ogra recommended a reduction of 11.9pc in the price of petrol, 6.2pc in the price of high speed diesel (HSD), 3.95pc in the price of high octane blending component (HOBC) and 4.93pc in the price of light diesel oil (LDO).

In a statement, Nawaz Sharif said Pakistan was the only country in the region that had passed the cut in petroleum prices on to masses whenever these were reduced on the international market.

Despite the deficit or shortfall in revenue, the government gave a priority to the interest of the masses and passed relief on to them, he emphasized. He said no country in the region except Pakistan had reduced the prices of petroleum products to such a great extent.

The prime minister said he also desired to reduce the burden of taxes on the masses by slashing the current rates of taxes, duties, excise duty and sales tax. “It is our duty to serve the masses wholeheartedly and with full sincerity,” he remarked.

Similarly, the prime minister said besides a Rs3 per unit cut in the price of electricity the government had also succeeded in reducing load shedding during the last over two and a half years.

He said as he had pledged, loadshedding would Insha Allah be completely eliminated by the year 2018.  The prime minister said the recent reduction of Rs3 per unit in the price of electricity would help make Pakistani products competitive on the international market and augment exports. — Agencies

Israr Khan adds: Owing to the low ‘import price’ of re-gasified liquefied natural gas (RLNG), the government has reduced compressed natural gas (CNG) prices by Rs7 per litre at gas stations in Punjab which are fed imported gas. The price will be effective from today (Tuesday).

In Punjab, gas stations are using imported LNG while its prices are already deregulated at all retail outlets. This low priced gas will also be available at the stations in Islamabad using RLNG.

Early this month, the government had signed a $16 billion long-term (15-year) agreement with Qatar under which two agreements were made with Qatar Gas and another private sector company Gunvor. Under spot purchase, so far 20 ships have reached Pakistan. Four other ships are in the pipeline in which three are from Qatar Gas and one from Gunvor. 

With the new arrival, the prices will further go down in the months to come. All Pakistan CNG Association (APCNGA) Chairman Ghiyas Abdullah Paracha said the price of CNG would be slashed by Rs6 to Rs7 per kg at the CNG stations being run on RLNG which will reduce the oil import bill and pollution while providing jobs to millions.

“Pakistan’s CNG industry will soon reclaim the lost title of the world’s largest CNG industry due to the support and initiatives of the government backed by the vision of energy managers,” he said.

CNG in Punjab would be 30 percent cheaper than petrol making it attractive for motorists and transporters which will also reduce fares of public transport, providing relief to commuters. This will also reduce gas shortages in the country soon.