Govt reduces petrol price by Re1 per litre

The federal government on Saturday slashed the petrol price by Re1 per litre for the next fortnight in view of price fluctuation in the international market. 

As per a notification issued by the Finance Division on Saturday, the new price of petrol will be Rs256.13 per litre, down from Rs257.13.

Similarly, the price of high-speed diesel (HSD) has been reduced from Rs267.95 to 263.95 after a reduction of Rs4 per litre.

"The Oil & Gas Regulatory Authority (OGRA) has reviewed and adjusted consumer prices for petroleum products in view of recent fluctuations in the international oil market," stated the notification.  

Meanwhile, prices of other petroleum products have also been reduced.

The new price of kerosene oil will be Rs171.65, down by Rs3.20 from Rs174.85 per litre. Likewise, the price of light-diesel oil has been reduced by Rs5.25 from Rs161.06 to Rs155.81 per litre.

Oil prices in the global markets settled lower on prospects for a peace deal between Russia and Ukraine that could ease global supply disruptions by ending sanctions against Moscow, but losses were limited by a delay in US immediate reciprocal tariffs.

According to analysts, global oil demand has surged to 103.4 million barrels per day (bpd), up by 1.4 million bpd from the prior year.

Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers. The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.