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Wednesday, May 22, 2024

Government Slashes Fuel Prices

The government announces a significant reduction in fuel prices following OGRA recommendations, while also implementing adjustments in LPG rates to reflect changes in international market dynamics.

The government announced a significant reduction in fuel prices, effective from today, in accordance with the recommendations of the Oil and Gas Regulatory Authority (OGRA). The Ministry of Finance released a notification detailing the revised prices for petrol and diesel for the upcoming fortnight. While the prices of light diesel oil and kerosene remained deregulated, OGRA separately issued a notification regarding the decrease in the price of liquefied petroleum gas (LPG).

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As per the notification, the price of petrol has been lowered to Rs288.49 per litre, marking a decrease of Rs5.45 from the previous rate of Rs293.94. Similarly, the price of high-speed diesel (HSD) has been adjusted to Rs281.96 per litre, witnessing a reduction of Rs8.42 from the earlier rate of Rs290.38 per litre. These revised prices will take effect from midnight Tuesday and will remain applicable for the next fortnight. The Ministry attributed this reduction to the declining trend observed in international petroleum prices over the last two weeks.

Decrease in LPG Prices

Additionally, OGRA announced a notable decrease of Rs11.88 per kilogram in the price of liquefied petroleum gas (LPG) for the month of May. This reduction translates to a domestic LPG cylinder witnessing a decline of Rs140, while the commercial cylinder experiences a decrease of Rs539. The Ministry further highlighted that the LPG producer price is linked to the Saudi Aramco-CP and the US dollar exchange rate, both of which have experienced a decline compared to the previous month. This resulted in a 4.74% decrease in the LPG price.

In April, the LPG price stood at Rs250 per kg, with domestic and commercial cylinders priced at Rs2,954 and Rs11,366 respectively. With the latest reduction, domestic cylinders are now priced at Rs2,814, and commercial cylinders at Rs10,826. OGRA emphasized that these adjustments were made considering fluctuations in international market dynamics and exchange rates, aiming to ensure fair pricing and affordability for consumers.