Saturday, July 15, 2023

Govt slashes petrol price by Rs9 per litre after rupee makes gains against dollar

Finance Minister Ishaq Dar announces decision in a televised address

Finance Minister Ishaq Dar is announcing the new fuel prices in this still taken from a video on Saturday, July 15. — YouTube/GeoNews
Finance Minister Ishaq Dar is announcing the new fuel prices in this still taken from a video on Saturday, July 15. — YouTube/GeoNews

  • Appreciation in value of rupee helped govt to decease prices: Dar.
  • PM directed to pass on maximum relief to masses, says minister.
  • New prices will be effective from July 16 (Sunday).

Finance Minister Ishaq Dar announced on Saturday that the price of petrol and diesel have been decreased by Rs9 and Rs7 per lite, respectively in the fortnightly review.

In a televised address on Saturday, the finance minister said one petroleum product had witnessed increase while the price of another went down in the international market during the last 15 days. 

Following the reduction, the petrol will be available at Rs253 per litre while the price of HSD will be Rs253.50 per litre.

Dar said no changes had been made to the petroleum development levy (PDL) which was increased to Rs60 per lite on the demand of International Monetary Fund (IMF). 

The new prices will be effective from July 16 (Sunday).

The finance minister said the local currency had appreciated against the US dollar in the last 15 days after Pakistan signed a staff-level agreement with International Monetary (IMF) on $3 billion Stand-By Arrangement (SBA). 

He said Prime Minister Shehbaz Sharif had directed the authorities concerned to pass on maximum relief to the masses.

Earlier, The News reported citing oil industry that international prices of petroleum products rose in recent days, but since the domestic currency has appreciated against the dollar after the IMF approved a $3 billion loan and released the first tranche of $1.2 billion, consumers could benefit from a cut in petrol price.

According to the working of the oil industry, the ex-depot price of petrol is showing a decline to Rs251.92 per litre for the next fortnight — a Rs10.08 drop from the existing price of Rs262 per litre.

Meanwhile, the ex-depot price of HSD is indicting a Rs3.66 increase to Rs264.16 per litre against its existing price of Rs260.50 per litre.

The price of light-speed diesel is showing a Rs1.43 per litre increase to Rs155.65 per litre compared to the existing price of Rs154.22 per litre.

Similarly, the ex-depot price of Kerosene is also showing a rise of Rs0.73 per litre to reach Rs171.78, compared to the current Rs171.05 per litre.

The exchange rate has helped slash the ex-depot price of petrol, while also keeping the increase in the ex-depot price of diesel lower.

The government is charging a Rs55 per litre petroleum levy on petrol, which was raised by Rs5 per litre in the last review of prices.

The government is charging Rs50 per litre PL on HSD, whereas it is required to be raised to Rs60 per litre under the IMF conditions.

However, instead of raising the PL by Rs10, the government could increase it by Rs5 per litre.