Govt cuts petrol price by Rs8 per litre

The prices of petroleum products have been slashed by up to Rs8 per litre Wednesday, Finance Minister Ishaq Dar announced in a televised address.

The new price of petrol will be Rs8 per litre after a Rs262 cut. Meanwhile, the new price of diesel will be Rs253 per litre after being reduced by Rs5.

The prices will come into effect at 12am tonight and will remain unchanged for the next fortnight.

Dar said that cumulatively, the prices of petrol and diesel were reduced by Rs20 and Rs35 per litre, respectively, in May. 

The government's announcement comes as it faces increased pressure due to rising petrol prices — which had reached a record of Rs282 per litre earlier this year — and inflation, which is currently the highest in the region.

The recent decline in global oil prices has provided some relief, but the government is still facing difficulty in keeping prices down as the rupee depreciates.

Oil marketing companies (OMCs) had estimated that the prices of diesel and petrol are likely to drop by Rs5 per litre. Separately, sources also said that the government might keep the prices of petroleum products unchanged due to the rupee's depreciation.