In a significant move to alleviate consumer costs, the government has announced that the petrol price reduced by Rs 6.17 per litre, effective August 1, 2024. This adjustment aligns with the recent global decrease in oil prices.
In addition to diesel, the price of petrol has been reduced by Rs6.17 per litre, bringing the new rate to Rs269.43 per litre. Kerosene oil will now cost Rs177.39 per litre, down by Rs6.32, while light diesel oil (LDO) has been slashed to Rs160.53 per litre, marking a reduction of Rs5.72 per litre.
The Oil & Gas Regulatory Authority (Ogra) has calculated these revised consumer prices based on international market fluctuations. The finance ministry’s statement highlights these adjustments, effective for the next fortnight starting August 1, 2024.
The reduction in High-Speed Diesel (HSD) to Rs272.77 per litre from Rs283.63 is expected to mitigate inflationary pressures on consumers, particularly benefiting sectors reliant on HSD like agriculture and transport.
Petrol, used extensively in motorbikes and cars and an alternative to CNG in regions like Punjab, has seen a price drop from Rs275.60 to Rs269.43 per litre. This adjustment could impact transportation costs and consumer expenses in affected areas.
The kerosene oil price decrease to Rs177.39 per litre from Rs183.71 is notable, as kerosene is a crucial fuel for cooking in areas lacking LPG, particularly in northern regions. The Pakistan Army is a major consumer of this commodity.
Light Diesel Oil (LDO), used primarily in industry, will now cost Rs160.53 per litre, a decrease from Rs166.25.
The government continues to levy Rs60 per litre on petrol and HSD, while kerosene oil is taxed at Rs0.05 per litre. No levy is applied to LDO. With a focus on enhancing revenue, the government may adjust the petroleum levy rates further.
In contrast, the collection of sales tax on petroleum products remains zero, with revenue directed to provincial coffers, while the federal government benefits from the petroleum levy.
Ogra also announced an increase in LPG prices for August 2024. LPG will rise by Rs2.28 per kilogramme to Rs236.66. Consequently, domestic LPG cylinders will cost Rs2,797, up from Rs2,770, while commercial cylinders will see a price increase to Rs10,760.
These updates reflect Ogra’s efforts to regulate the LPG market and ensure fair pricing for consumers.
