The government has implemented a series of measures aimed at reducing fuel prices in Pakistan. As of August 1 and 3, the prices of petrol and high-speed diesel (HSD) will be reduced by 12 paisas and 66 paisas per litre respectively.
Petrol is expected to retail at Rs336.03 per litre, while HSD will cost Rs392.38 per litre. The reduction in fuel prices comes as part of a broader effort to curb inflationary pressures and stabilize the economy. The government has been working tirelessly to address the ongoing energy crisis, which has led to fluctuations in international market prices.
The Petroleum Division’s notification states that the new prices will be applicable from August 1 to August 3. This move is expected to benefit consumers who rely on fuel for transportation and other daily activities. However, not everyone is pleased with the decision, as the All Pakistan Dealers Association has announced plans to protest against the change.
The increase in petrol price comes after a record 32pc hike in regasified liquefied natural gas (RLNG) prices last month. The RLNG price had surged from $19.52 per mmBtu in February this year, reaching as high as $25.83 per mmBtu for SNGPL and $25.09 per mmBtu for SSGCL.
The increase in fuel costs is expected to have a significant impact on power generation, with the fuel cost for RLNG-based power plants working out to around 148pc of their total expenses compared to February this year. This will likely lead to an increase in electricity prices, which could further exacerbate inflationary pressures.
In contrast, diesel prices have seen a significant drop from a peak of Rs520.35 per litre recorded on April 3. The price had been rising steadily since the US-Iran war broke out on February 28, and was expected to continue its upward trajectory until it reached the new daily pricing decision set by the Oil and Gas Regulatory Authority (Ogra).
The petroleum minister has stated that fuel prices will now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US. The cabinet and prime minister have also announced targeted relief measures for consumers.
Overall, these changes are expected to benefit those who rely heavily on fuel for transportation and other daily activities. However, it is essential to note that not everyone will be pleased with this decision, and there may be further protests or challenges ahead in the coming days.
Based on reporting from Dawn.
