'Govt likely to reduce petrol price by Rs9 per litre from June 16'

KARACHI: In what might be a possible relief for Pakistanis who have been troubled with sky-high inflation, the federal government is expected to slash petroleum prices by up to Rs9 per litre from June 16, sources told Geo News on Thursday.

Oil marketing companies (OMCs) sources said that petrol price is likely to be reduced by up to Rs9 per litre, whereas diesel rates are expected to drop by up to Rs4 per litre.

Meanwhile, the price of kerosene oil might be slashed by up to Rs2 per litre, the sources added.

The country fixes fuel prices on a fortnightly basis after evaluating fluctuating international energy market costs and the rupee-dollar parity to transfer the impact on domestic consumers.

About 85% of Pakistan's oil needs are imported, and the country has been struggling with a balance of payments problem and skyrocketing inflation.

If approved, the price of petrol would come down to Rs259.36 per litre from the current rate of Rs268.36 per litre. Meanwhile, high-speed diesel will be sold at Rs266.22 compared to the existing price of Rs270.22 per litre.

The federal government had reduced petrol and diesel prices by Rs4.74 and Rs3.86, respectively on May 31.

Meanwhile, the government has proposed increasing the petroleum development levy (PDL) from Rs60 to Rs80 for the next fiscal year, starting July 1. Finance Minister Muhammad Aurangzeb has said it would not be hiked in one go and would be gradual.