Petrol rate set at Rs268.36, high-speed diesel at Rs270.22 per litre for next 15 days Consumers’ joy over ‘relief’ proves short-lived
After causing considerable confusion, the government on Friday ultimately reduced the prices of petrol and high-speed diesel by Rs4.74 and Rs3.86 per litre, respectively, a stark contrast to the figures initially released by the Prime Minister’s Office hours earlier.
An earlier statement from the PMO announced a reduction of Rs15.39 and Rs7.88 per litre for petrol and high-speed diesel (HSD), respectively.
However, this contradicted the finance ministry, which had recommended a Rs4.74 and Rs3.86 per litre cut based on consultations with the Ministry of Energy and the Oil and Gas Regulatory Authority (OGRA) in the formal summary sent to the PMO.
It was later revealed that the PMO statement mistakenly repeated the May 15 decision that cut petrol and HSD prices by Rs15.39 and Rs7.88 per litre. The old file had been mistakenly shown to the PM for approval.
Prime Minister Shehbaz Sharif’s decision was initially promoted as a “big relief” on the Government of Pakistan’s official X account, causing significant media hype and confusion until late Friday night, while OGRA and the ministries of finance and energy privately contradicted the PMO statement.
However, consumers’ relief was short-lived as, in the early hours of Saturday, the Ministry of Finance prevailed, likely considering the upcoming IMF bailout and support from key stakeholders, despite resistance from the executive.
In a late-night announcement around 12:38 am, the ministry stated that due to a decreasing trend in international petroleum prices over the past fortnight, it decided to revise the existing consumer prices accordingly.
Reduction in LPG, kerosene, and LDO prices
OGRA also reduced the price of an 11.8kg domestic LPG cylinder by 1.6%, or Rs45.62, for June.
The prices of kerosene and light diesel oil (LDO) were also reduced by Rs1.87 and Rs3.88 per litre, respectively, although the government did not announce these prices for unknown reasons.
In a notification, OGRA set the producer price of LPG at Rs193.30 per kg, down from Rs197.16 per kg.
After adding GST and distributors’ margin, consumers will pay Rs2,768.23 for an 11.8kg cylinder or Rs234.57 per kg. Previously, the prices were Rs2,813.85 and Rs238.38.
OGRA attributed the reduction in LPG prices to exchange rate gains and a decline in international prices. “The LPG producer price is linked with Saudi Aramco-CP and the US dollar exchange rate,” the regulator explained, adding that “compared to the previous month, Saudi Aramco-CP increased by 2%. The average dollar exchange rate decreased by 0.04%, resulting in a decrease in LPG consumer price by Rs45.62 per 11.8kg cylinder (1.62%).”
