Govt cuts petrol price by Rs5 per litre

Islamabad: The government on Wednesday slashed prices of petroleum products by up to Rs5 per litre effective from December 16, 2021.

According to the reports, it reduced the price of high-speed diesel (HSD) by Rs5 per litre, petrol by Rs5 per litre, kerosene oil by Rs7 per litre and light diesel oil (LDO) by Rs7.01 per litre.

Following the government’s decision to cut prices, the price of petrol has come down to Rs140.82 with a reduction of Rs5 per litre. The price of high-speed diesel (HSD) now stands at Rs137.62 with a reduction of Rs5 per litre.

After reduction of Rs7, the price of kerosene oil has been slashed to Rs109.53 per litre. The price of light diesel oil has come down to Rs107.06 per litre, a reduction of Rs7.01. 

The government had increased prices of petroleum products over the past several months. Now, the prices have been reduced for the fortnight from December 16, 2021.

Earlier, the Oil and Gas Regulatory Authority (OGRA) had prepared a summary for the new oil price to be effective from December 16, 2021 where it has proposed a cut in petrol prices.

The OGRA had proposed reduction in prices of petroleum products by Rs 8 to 10 per liter. The OGRA had prepared three proposals regarding the prices of petroleum products.

The prices of petroleum products in the global market remained at 74 per barrel. Prices of petroleum products decreased by 10 per cent compared to last month and the government bought oil at 68-74 per barrel in the last 13 days. There is no justification for hike in prices of petroleum products.

According to OGRA sources, a reduction in prices of petroleum products by Rs 8 to 10 per liter had been proposed due to reduction in petrol prices in the global market. “The government will finalise petroleum prices after determining tax rates. If the government increases levy, then the petrol price will be decreased only Rs4,” it added. 

The sources further maintained that the fuel prices could be maintained in case of increasing tax two time. The OGRA will send a summary to the government today.

It is noteworthy here that the revised fuel prices will come into effect from December 16. These prices of petroleum products will stay in place for next fortnight.