Islamabad, September 15, 2024 – In a major relief to consumers, Pakistan announced a sharp reduction in petroleum prices for the second half of September 2024.
The new rates, effective from September 16, 2024, were notified by the Finance Division and reflect significant cuts in response to the decline in international oil prices.
The notification outlined the following adjustments in petroleum product prices:
• Petrol: Reduced by Rs 10 per liter, bringing the price down to Rs 249.10 from the previous rate of Rs 259.10.
• High-Speed Diesel (HSD): Slashed by Rs 13.06 per liter, with the new price set at Rs 249.69, down from Rs 262.75.
• Kerosene Oil (SKO): Decreased by Rs 11.15 per liter, reducing the price to Rs 158.47, down from Rs 169.62.
• Light Diesel Oil (LDO): Cut by Rs 12.12 per liter, bringing the price down to Rs 141.93 from Rs 154.05.
The Finance Division attributed the reductions to the Oil and Gas Regulatory Authority (OGRA) of Pakistan, which calculated the new consumer prices based on fluctuations in the international oil market. The decline in global crude oil prices has allowed Pakistan to pass on the benefit to consumers, bringing much-needed relief amidst ongoing economic challenges.
Impact on Inflation and Economy
Market analysts have welcomed this move, noting that the sharp reduction in petroleum prices could help curb inflation and improve business confidence. The drop in transportation and production costs as a result of cheaper fuel is expected to ease the cost of living for the public and reduce the overall inflationary pressures that have been mounting in recent months.
This decision is also seen as a positive step for businesses that rely heavily on fuel, such as the logistics, manufacturing, and agriculture sectors. Lower fuel prices will reduce operational costs, which could translate into more competitive pricing for goods and services across various industries.
Government’s Ongoing Efforts
The latest reduction in petroleum prices comes as part of the government’s broader efforts to provide financial relief to the population while ensuring economic stability. Over the past several months, the government has faced increasing public pressure to address inflation and manage the rising cost of living.
While the cuts provide temporary respite, analysts caution that future price adjustments will depend on global oil market trends and the government’s fiscal strategies.
