On Monday, the government announced a major cut in the price of fuels, which will be applicable from October 1, 2024. In the case of petrol, its prices have been reduced by Rs2.07 per liter, and are between Rs247.03 per liter and Rs249.10. In higher-speed diesel, there was a steeper cut to Rs3.40 per liter. A cut to Rs1.03 per liter has been provided on light diesel, while kerosene oil was cut by Rs3.57 per liter.
These price reductions are, however a relief to customers, especially as the country continues to experience high inflation. Reduction in petrol is expected to cover motorbikes and car users, while low-speed diesel prospects will help in lightening the cost of transport and agriculture, which do not mainly depend on this fuel.
Its consumption also decreased as kerosene oil is an essential commodity in northern Pakistan when LPG is not available. This fuel has become a staple for the Pakistan Army as this is used majorly for cooking and heating purposes, especially in places where other options are scarce. The prices of light diesel oil have also been reduced as it is one of the primary fuels utilized in several industries.
At present, the government is imposing Rs 60 per liter on petroleum levies on both petrol and high-speed diesel. The price decrease was announced after directions given by Prime Minister Shehbaz Sharif to give relief to the nation from economic burden. In two months, prices of petrol have been decreased by Rs 28.57 per liter and high-speed diesel by Rs 37.51 per liter.
The Finance Division, in consultation with OGRA, had reviewed international oil prices and exchange rate fluctuations before the mooted price adjustment was actually proposed. As a matter of fact, OGRA works out the consumer prices for each fortnight that are going to emerge and compute them based on global market trends and the exchange rate. Such proposals are also placed before the Prime Minister for final approval.
LPG Prices Rising
The cost of liquefied petroleum gas has gone up by Rs7.31 per kg starting from October 1, 2024, due to the decrease in oil prices. The increase in fuel prices is attributed to a 3.84% rise in the contract price of Saudi Aramco and minimal fluctuation in the US dollar exchange rate.
Thus, a regular 11.8 kg LPG cylinder now costs Rs2,965.38 as compared to Rs2,879.10 in September as the price has been raised by Rs86.28. This hike comes when winter itself is knocking at the door and during the winter months, more cooking and heating fuel is in demand everywhere in the country.
These adjustments, therefore, point to the fact that the government is targeting control over domestic energy prices against international market fluctuations and ensuring consumer stability.
However, many such adjustments will give consumers a little relief regarding petrol and diesel prices, and they will become a challenge to families and businesses relying mostly on LPG.
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