ISLAMABAD: The federal government of Pakistan is likely to reduce the prices of petroleum products by up to Rs 9 per litre from June 16, a development that could provide some relief to inflation-hit masses, local media on Thursday citing official sources.
The price of diesel is expected to be slashed by Rs 4 per litre, whereas kerosene oil rates are likely to be reduced by Rs 2 per litre, the oil marketing companies (OMCs) sources added.
The final price of the petroleum products will be calculated by the Oil and Gas Regulatory Authority (Ogra) and will be based on international petroleum rates on June 13 and 14.
Pakistan fixes the prices of fuel on a fortnightly basis after evaluating the international energy market and the difference between the rupee and the US dollar to transfer the impact on domestic consumers.
About 85% of Pakistan’s oil is imported, and the country has been struggling with a problem of balance of payments and high inflation.
If approved, the new price of petrol would be Rs 259.36 per litre from the current rate of Rs268.36 per litre. Meanwhile, high-speed diesel would come down at Rs266.22 from the existing price of Rs270.22 per litre.
The federal government slashed petrol and diesel prices by Rs4.74 and Rs3.86, respectively on May 31.
Meanwhile, the government has proposed an enhanced petroleum development levy (PDL) from Rs60 to Rs80 for the next fiscal year, starting July 1. Finance Minister Muhammad Aurangzeb while presenting the budget for the next fiscal year said it would not be increased in one go and would be gradual.
