Islamabad, July 31, 2024 – In a move set to provide much-needed respite to citizens grappling with high electricity bills and taxes, Pakistan announced a significant reduction in petroleum prices for the first half of August 2024. This development comes as a response to the recent decline in global oil rates.
Effective from August 1, the price of petrol has been reduced by Rs 6.17 per litre, bringing it down to Rs 269.43 per litre from the previous Rs 275.60. Similarly, the price of high-speed diesel (HSD) has been slashed by Rs 10.86 per litre, setting the new rate at Rs 272.77 per litre from the earlier Rs 283.63.
The Oil and Gas Regulatory Authority (Ogra) calculated the new consumer prices based on international market trends and exchange rate fluctuations. Following approval from Prime Minister Shehbaz Sharif, the new fuel rates were officially notified.
| Products | Existing Price | New Price | Increase/Decrease |
|---|---|---|---|
| Petrol | Rs 275.60 | Rs 269.43 | – Rs 6.17 |
| High-speed diesel | Rs 283.63 | Rs 272.77 | – Rs 10.86 |
| Kerosene oil | Rs 183.71 | Rs 177.39 | – Rs 6.32 |
| Light diesel oil | Rs 166.25 | Rs 160.53 | – Rs 5.72 |
The price of kerosene oil has been reduced by Rs 6.32 per litre, bringing it to Rs 177.39 from Rs 183.71. Light diesel oil (LDO) saw a decrease of Rs 5.72 per litre, with the new rate being Rs 160.53 compared to the previous Rs 166.25.
This relief in petroleum prices was anticipated following a $1.50 per barrel reduction in the premium by Kuwait Petroleum Company (KPC) on diesel, alongside a lower demand for petroleum products from major global economies, including the United States and China.
In the prior fortnightly review, petrol prices had been increased by Rs 9.99 per litre from July 16 to July 31, while the high-speed diesel (HSD) rate had risen by Rs 6.18 per litre. Despite these earlier hikes, the government has decided not to increase the petroleum development levy (PDL), which remains unchanged at Rs 70 per litre.
Petrol, widely used in private transportation, small vehicles, rickshaws, and two-wheelers, significantly impacts the budgets of middle and lower-middle-class families. On the other hand, high-speed diesel, essential for heavy transport vehicles, trains, and agricultural machinery, has a broader inflationary effect. It drives up the costs of vegetables and other food items due to its crucial role in the logistics and agricultural sectors.
The reduction in fuel prices is a strategic move to alleviate the economic pressure on the populace, especially during a period marked by high inflation and economic challenges. As the government continues to navigate the complexities of the global oil market, this price cut is a welcome development for millions of Pakistanis struggling to make ends meet.