Diesel prices slashed, petrol stays firm

ISLAMABAD, May 01 : The government on Sunday reduced the price of high-speed diesel (HSD) by Rs5 per litre and the light diesel oil (LDO) by Rs10 per litre for the next 15 days mainly because of the fluctuations in global oil prices, but kept the petrol prices unchanged.

The new petrol prices took effect after midnight Sunday. For the next 15 days, the HSD will be sold at Rs288 per litre against last fortnight’s price of Rs293 per litre. Similarly, LDO will be sold at Rs164.68 per litre against the old price of Rs174.68 per litre.

Also the government reduced the price of kerosene oil by Rs10 per litre. Now, the kerosene oil will be available at a price of Rs176.07 per litre compared with the old price of Rs186.07 per litre.

The HSD is widely used in transport and agriculture sectors. At present, the Kharif crop season is under way, therefore, a decrease in the price will have a healthy impact on farmers, who are already facing higher oil prices.

The government is currently charging a maximum rate of petroleum levy (PL) of up to Rs50 per litre on high octane blending component (HOBC), petrol, and HSD to boost the its revenues.

Therefore, the government passed on relief to the consumers on the HSD. Although, the government was expected to reduce the price of petrol but no change was announced, keeping the existing price of Rs282 per litre.

The petrol is used by motorbikes and cars. This is also an alternative to compressed natural gas (CNG). After gas shortage and higher prices of liquefied natural gas (LNG), the CNG retail outlets were shut during the winter season. Therefore, consumers mainly in Punjab, were forced to use expensive fuel, petrol, for cars.

Kerosene oil is used in the remote areas of Pakistan for cooking purposes, especially in the northern part of the country, where the liquefied petroleum gas (LPG) was not available. The army is also a key user of the kerosene oil in the upcountry areas.

The LDO is used in the industry. The fall in fuel prices came as dollar witnessed a decline of Rs2.57 from 286.66 to Rs284.09 during the last fortnight.

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