No Change in Petrol and Diesel Prices – Govt

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The federal government has decided to keep the petrol and diesel prices unchanged for the next fortnight. Earlier, reports suggested the price of petrol may go down by Rs. 5-10/liter while it was expected the diesel can see a reduction of Rs. 15-20/liter.

In its notification, Ministry of Finance stated that the government has decided to keep the existing price of petrol and High-Speed Diesel (HSD) unchanged. Meanwhile, the prices of Kerosene Oil and Light Diesel Oil (LDO) have seen a decline of Rs. 10/liter. The new prices will remain implemented till April 15, 2023.

The new prices will be effective from April 1, 2023.

Current Fuel Prices 

The petrol price remains Rs. 272/liter, while diesel stays at Rs. 293/liter. Meanwhile, after a Rs. 10 reduction, Kerosene Oil will now cost Rs. 180.29 compared to old rate of Rs. 190.29. And LDO will now cost Rs. 174.68 against Rs. 184.68 as it has also seen a reduction of Rs. 10/liter.

Earlier today, media reported that Oil and Gas Regulatory Authority (OGRA) had sent a summary to the government, recommending a decrease of up to Rs. 15 in price of petroleum products. The body had suggested a reduction of Rs. 10-12/liter in petrol price, Rs. 10-15/liter in price of diesel.

However, the regulatory body also proposed the government to keep the prices unchanged to overcome the budget deficit.

Global Trend and Petrol Price in Pakistan 

As per the global trend, the petrol price is showing a decline of Rs. 13-14/liter, but due to exchange loss, the government was expected to reduce the price by Rs. 4-5/liter for the next 15 days. As far as diesel is concerned, the ex-refinery diesel price shows Rs. 34/liter reduction, but the exchange loss on diesel goes over Rs. 100/liter, which needs to be adjusted. Henceforth, the government was expected to announce a reduction of Rs. 15-20/liter. 

The industry sources believe this is the right time for the government to adjust the exchange losses. The fall in crude price has provided the ruling alliance enough fiscal space to accommodate the oil companies, which are facing financial problems as they have yet to receive the full amount of exchange losses. 

Currently, the exchange rate is heavily tilted towards the dollar, which is a massive hurdle for the government in reducing petroleum prices in the country. The industry experts have estimated the exchange rate for next fortnight at Rs. 283 to set the ex-refinery rates. 

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