The government has announced a Rs10 per litre cut in the price of petrol owing to a drop in fuel rates in the international market during the past fortnight.
“The Oil and Gas regulatory Authority (Ogra) has worked out the consumer prices of petroleum products, based on the price variations in the international market,” a statement released by the Finance Division read.
The new price will be effective from midnight.
The latest change in petrol price comes as the fourth consecutive price cut in two months.
In the previous fortnight, the federal government had slashed the price of petrol by Rs1.86 per litre, from Rs260.96 to Rs259.10 per litre.
The government had also reduced the price of high-speed diesel (HSD) from Rs266.07 per litre to Rs262.75 after a cut of Rs3.32.
Petrol, also called mogas, is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.
Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.
