ISLAMABAD: Under the prevailing petroleum pricing formula of the government, OGRA has updated the ex-depot prices of petroleum products after issuing a notification through the Ministry of Energy, Petroleum Division.
The revision has become necessary as per the changing dynamics of global crude oil markets and costs incurred in importing the petroleum products into Pakistan. The current petroleum pricing mechanism facilitates periodic revisions in prices in response to changes in international markets.
The Petroleum Products Pricing Mechanism of the govt decreases petrol price via a notification from the Ministry of Energy (Petroleum Division), wherein OGRA updated the prices of petroleum products ex-depot from Friday, following the petroleum pricing policy. The process has enabled greater flexibility in pricing based on changes in global crude markets and various other factors impacting the cost of fuel distribution.
Petrol prices have been slashed by Rs2.20 per litre to bring the rate down to Rs327.62 per litre. The reduction comes in continuation of previous reductions made in recent reviews. Petrol prices were previously set at Rs329.82 per litre before being revised downward. Motor Spirit is also referred to as Petrol.
HSD prices have dropped to Rs380.86 per liter, falling by Rs1.50 per liter from previous levels of Rs382.36 per liter. Although smaller than those of petrol, this reduction continues a downtrend in diesel prices that affects transportation and logistics expenses nationwide.
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The fresh prices will stay valid until Monday, adhering to the established government policy whereby the pricing of fuel is determined according to prevailing trends in international oil markets and related cost considerations. The shorter period for price reviews is indicative of greater flexibility in fuel pricing in the country. Under existing policies, monthly fuel pricing revisions have now replaced fixed intervals between adjustments.
As per the previous review held on Thursday, the govt had reduced the price of petrol by Rs3.19 per litre and also slashed HSD prices by Rs1.50 per litre. The two consecutive review results indicate that the ongoing decline in petrol prices by the govt is now into its second successive period, despite fluctuations in the magnitude of the cuts across both reviews. The trend reflects a phase of relief concerning fuel prices, although this situation may persist only temporarily as long as officials keep monitoring international oil price changes carefully.