ISLAMABAD: Pakistan’s Finance Minister Ishaq Dar announced on Saturday a reduction in the price of petrol and diesel by Rs9 and Rs7 per litre, respectively, in the fortnightly review. The decrease comes after one petroleum product experienced an increase while another witnessed a price drop in the international market over the last 15 days.
In his televised address, the finance minister stated that the new prices will take effect from July 16. Following the reduction, petrol will be available at Rs253 per litre, while the price of High-Speed Diesel (HSD) will be Rs253.50 per litre.
Dar also mentioned that no changes have been made to the petroleum development levy (PDL), which was increased to Rs55 per litre at the demand of the International Monetary Fund (IMF).
Petroleum Products Prices:
July 16 to July 31, 2023:REDUCTIONS:
MS Petrol—with Rs 9 per litre reduction, new price Rs 253 per litre.
High Speed Diesel —with Rs 7 per litre reduction, new price Rs 253.50 per litre.
— Ishaq Dar (@MIshaqDar50) July 15, 2023
Appreciation of Pakistani Currency Against US Dollar
The finance minister attributed the reduction in fuel prices to the appreciation of the local currency against the US dollar. Pakistan recently signed a staff-level agreement with the IMF on a $3 billion Stand-By Arrangement (SBA), which has positively impacted the exchange rate.
Prime Minister Shehbaz Sharif has directed the authorities to ensure maximum relief for the masses, prompting the government to pass on the benefits of the stronger rupee to consumers through the reduction in petrol and diesel prices.
The adjustment in fuel prices aims to alleviate the burden on the public, who have been grappling with rising inflation and the high cost of living.
On July 1, the federal government kept the petrol price unchanged at Rs262 per litre and hiked the HSD price by Rs7.5 per litre to Rs260.5.
At the same time, the finance minister had said that the Oil and Gas Regulatory Authority had made efforts to minimize the burden of price increases on the masses.
