GREAT NEWS – Govt Reduces Petrol Prices
In a very good news, the federal government has announced to reduce the petrol prices. Addressing a press conference, Federal Finance Minister Hammad Azhar said that the price of petrol has been decreased by Rs1.50. Meanwhile, the price of high seed diesel (HSD) has been decreased by Rs3.
New Prices:
After the reduction, the new price of petrol will be Rs110.4, against its old rate of Rs111.90. Meanwhile, the revised cost of HSD is Rs113.8, as compared to its old price Rs116.8.
Earlier, Oil and Gas Regulatory Authority (OGRA) recommended the price reduction in a summary to the finance ministry. After a meeting, the ministry accepted the summary by OGRA. It is pertinent to mention that the current Petrol Levy (PL) on diesel is Rs12, while the PL on per liter petrol is Rs11.23.
Price Hike Recommendation Rejected by PM:
Prime Minister Imran Khan had earlier rejected the petrol prices increase summary by OGRA. After February 15, 2021, the government has not increased the rates of petroleum goods. The federal government revises the petroleum goods’ prices after every 15 days. The former government used to do it on monthly basis.
On February 26, OGRA recommended a massive hike in petrol price. According to media reports, the authority suggested Rs20.7 per liter in rate of petrol. Meanwhile, Rs19.61 per liter hike was recommended in price of diesel. However, the summary was rejected by the premier.
Possible Reason Behind Price Drop:
The possible reason behind this decrease is COVID-19, as the third wave has hit the country. Recently, government announced new restrictions, limiting the movement of public. Meanwhile, Punjab has banned the public transport, meaning the consumption of petroleum goods has reduced. The government also decreased prices when coronavirus first hit Pakistan and country-wide restrictions were implemented.
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