In a welcome move, the federal government announced a substantial reduction in fuel prices on Sunday, slashing petrol by Rs10 per litre and diesel by Rs13.6 per litre. The price of light diesel has also been lowered by Rs12.12 per litre, with the new rates taking effect from midnight on Monday.
This decision comes in light of recommendations from the Oil and Gas Regulatory Authority (Ogra), which submitted a proposal to the prime minister advocating for a price cut. The drop is largely attributed to a decrease in international crude oil prices between September 1 and September 14, with global rates plummeting by Rs8 to Rs12 per barrel.
The international price of crude oil, which hovered around $90 per barrel in April 2024, has since fallen to approximately $70 per barrel in September, marking the lowest price in the last six months. In response to this sharp decline, Ogra, in coordination with the petroleum ministry, suggested a reduction of Rs6 to Rs10 per litre. After reviewing the summary, the government decided on a more generous cut to ease the financial burden on consumers.
This reduction is expected to offer significant economic relief, particularly as fuel prices impact the cost of transportation and everyday goods.
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