In a promising development for inflation-stricken consumers, the federal government is set to announce a reduction in petroleum product prices in its upcoming review on August 15, 2024. Sources from the Oil and Gas Regulatory Authority (OGRA) suggest that prices for petrol, diesel, and kerosene are expected to decrease significantly. Petrol prices may drop by more than Rs9 per litre, while diesel could see a reduction of about Rs8.5 per litre. Kerosene, predominantly used in rural areas, might experience the most substantial decrease, with a potential drop of over Rs12 per litre.
OGRA is finalizing its recommendations, which will be presented to Finance Minister Ishaq Dar. The minister, in consultation with Prime Minister Shehbaz Sharif, will make the final decision on the new rates, which are anticipated to take effect from August 16, 2024.
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As of the first fortnight of August 2024, petrol is priced at Rs269.43 per litre, following a Rs6.17 reduction on July 31, while high-speed diesel is at Rs272.77 per litre. The potential new prices could see petrol at Rs260.43 per litre and diesel at Rs264.77 per litre, offering some relief to consumers amidst rising inflation.
The expected reduction comes as a part of the government’s efforts to address economic challenges and stabilize the economy. Despite global oil market fluctuations, the government aims to alleviate consumer pressure by adjusting local prices in line with international trends.
