Petrol price shrinks by Rs.4, Diesel by Re 1 Litre in Pakistan
Pakistan Times National News Desk

ISLAMABAD: Pakistan has announced reduction in the price of petroleum by Rs4 and diesel by Re 1 with immediate effect.

The decision to this effect was taken here at a high-level meeting chaired by the Prime Minister Shaukat Aziz.

As reported by 'Pakistan Times' [Daily Web Newspaper] on Tuesday that Government on Monday announced reduction in the price of petroleum by Rs 4 and diesel by Re 1 with immediate effect.

The decision of the government to reduce the oil prices was part of the consistent policy to link the POL prices with the international market and pass on the benefit of reduction of oil prices in the international market to the common man.

The Prime Minister approved the reduction in the prices of petrol (motor spirit) by rs. 4/- per litre and price of diesel (HSD) by rs.1/- per litre.

The meeting was attended by the Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon, Minister for Information and Broadcasting, Muhammad Ali Durrani, Minister of State for Information and Broadcasting , Tariq Azeem, Minister of State for Petroleum & Natural Resources Mir Muhammad Naseer Khan Mengal and senior officials.

New Prices

The new prices will be effective from midnight Monday and the new prices of Petrol will be rs. 53.70 per litre and diesel will be rs. 37.70/ per litre. The prices of petrol and diesel before reduction were rs. 57.70 and Rs. 38.73 per litre respectively.

It may be mentioned that the reduction in the prices of petrol and diesel in Pakistan has further come down as compared to India (calculated in Pak rupee terms).

With today’s reduction, the price of petrol and diesel in Pakistan has further come down from 14% to 23% and from 19% to 22% compared to average POL prices in India.

It may not be out of place to mention here that the Government has still to pay Rs. 12 billion to the oil industry on account of subsidy incurred due to freezing of oil prices last year when crude oil prices reached all time high levels.

An earlier report said that the government was likely to reduce prices of petroleum products today on directives of the president, sources here said. Prime Minister Shaukat Aziz will announce the decision.

Credible sources say that President Pervez Musharraf had taken notice of the consistent decline in the petroleum prices in the international market with no benefit to Pakistani consumers.

Thus, the President directed the government of passing on the impact of decrease in the oil prices in the international market to Pakistani users as well, sources said.

The ministries of Petroleum & Natural Resources and Finance had suggested Rs 2 and Rs 1 per litre reduction in petroleum and diesel prices respectively.

And, the Oil & Gas Regulatory Authority (OGRA) had recommended 15 to 16% cut in natural gas rates, while the Ministry of Finance had proposed six to seven percent reduction in summaries, which were lying pending for the last over two months.

The matter was, eventually decided today, giving relief to the consumers, if and when the transportation tariff is also reduced both by the public and private sectors in the light of the new price index of the petroleum and its’ products, sources added

Brainstorming

The slashing of oil prices has been decided after heavy brainstorming by the government.

Advisor for federal finance ministry, Dr. Ashfaque Hassan said on Tuesday that the cut in oil prices would bring some positive affects on the country’s economy, especially as regards to restraining hiking prices.

He said that the petroleum development levy (PDL) was zeroed in 2006-07 Budget and if the PDL was being recovered on any product, then this amount was utilized for subsidy on the other.

He said that the benefits of any further fall in future international oil prices would be passed on to the consumers.●