Pakistan Reduces Petrol and Diesel Prices Effective May 1, 2024

The Pakistani government has announced a significant reduction in petrol and diesel prices, providing relief to inflation-hit citizens. The move is expected to lower transportation and essential commodity costs, positively impacting the economy.

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Waqas Arain
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Pakistan Reduces Petrol and Diesel Prices Effective May 1, 2024

Pakistan Reduces Petrol and Diesel Prices Effective May 1, 2024

The federal government of Pakistan has announced a significant reduction in the prices of petrol and diesel, effective from May 1, 2024. According to a notification issued by the finance ministry, the price of petrol will be reduced by Rs5.45 per litre, bringing the new price to Rs288.49 per litre. The price of diesel has been decreased by Rs8.42 per litre, setting the new price at Rs281.96 per litre.

The price adjustments were made based on the recommendations of the Oil and Gas Regulatory Authority (Ogra) and the declining global crude oil prices. Ogra had suggested the price reductions due to a decreasing trend in international crude oil prices over the past two weeks. The current Brent oil market price stands at $88.50 per barrel, down by around 1% on Tuesday.

In addition to petrol and diesel, the prices of light-speed diesel (LSD) and kerosene oil have also been reduced. The price of LSD has been decreased by Rs5.63 per litre, while kerosene oil has been slashed by Rs8.74 per litre.

Why this matters: The reduction in fuel prices is expected to provide relief to the inflation-hit people of Pakistan. The lower prices will have a positive impact on the overall economy by decreasing transportation costs and subsequently, the prices of essential commodities.

The government regularly reviews and adjusts petroleum product prices every 15 days in response to changes in global oil prices and the local currency's value. Factors such as expected fuel consumption, supply costs, and monthly tax targets are considered when determining the final prices. In the previous review on April 16, the government had increased the petrol price by Rs4.53 per litre and high-speed diesel by Rs8.14 per litre.

Finance Minister Ishaq Dar stated, "The government is committed to providing maximum relief to the common man despite the challenging economic situation. We will continue to monitor the global oil prices and make necessary adjustments to ensure the well-being of our citizens."

The new petrol and diesel prices will remain in effect until the next review, scheduled for May 15, 2024. The government has already reached the maximum permissible limit of Rs60 per litre for the petroleum levy on both petrol and diesel, as agreed with the International Monetary Fund (IMF) under the ongoing bailout program.

Key Takeaways

  • Pakistan govt reduces petrol price by Rs5.45/litre, diesel by Rs8.42/litre from May 1, 2024.
  • Reduction due to declining global crude oil prices, as per Ogra recommendations.
  • Prices of LSD and kerosene oil also reduced, providing relief to inflation-hit citizens.
  • Lower fuel prices to decrease transportation costs, benefiting essential commodity prices.
  • Govt committed to monitoring global oil prices and making adjustments to support citizens.