https://arab.news/5g4qc
- New price of petrol is Rs247.03 per liter while that of diesel has been reduced to Rs246.29 per liter
- Pakistan’s government has reduced price of petrol by Rs28.57 and diesel by Rs37.51 in past two months
ISLAMABAD: Pakistan’s Finance Division announced this week it had slashed the price of petrol by Rs2.07 per liter till the next fortnight due to the fluctuating global prices of petroleum products, with the move expected to ease inflation further in the South Asian country.
Petroleum and electricity prices have been the key drivers of high inflation in Pakistan over the past two years. Inflation averaged close to 30% in FY23 and 23.4% in FY24, which ended on June 30, 2024. According to official figures, it eased to 9.6% in August this year.
“Government has reduced the prices of petrol by Rs2.07 per liter and high speed diesel by Rs3.40 per liter for next fortnight,” state broadcaster Radio Pakistan reported on Monday. As per the Finance Division’s notification, a copy of which is available with Arab News, the new price of petrol is Rs247.03 per liter and diesel Rs246.29 per liter.
The price of kerosene oil was also slashed by Rs3.57 per liter and light diesel by Rs1.03 per liter, with the new prices coming into effect from Oct. 1.
“On the directions of Prime Minister Shehbaz Sharif, the government has reduced the price of petrol by 28.57 rupees and diesel by 37.51 rupees during last two months,” the state broadcaster said.
Pakistan revises the price of petroleum products fortnightly, with the latest reduction following the government’s move to slash the price of petrol by Rs10 per liter on Sept. 15. In Pakistan, petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers, while any increase in the price of diesel is considered highly inflationary as it is mostly used to power heavy transport vehicles and particularly adds to the prices of vegetables and other eatables.
The latest fuel price adjustment takes place after the International Monetary Fund (IMF) formally approved a $7 billion loan program for Pakistan last week. The government says the development will further improve Pakistan’s macroeconomic indicators as it will strengthen its foreign reserves and allow Islamabad to meet is external financing obligations.