Petrol price controversy: What was the confusion?
Confusion emerged after Prime Minister Office initially announced massive reduction in POL prices
June 01, 2024
Most Pakistanis were delighted Friday night after receiving the news of a steep drop in petrol price, but their joy was short-lived as they woke up next morning to news that the reduction was not as drastic as reported by media earlier.
The confusion emerged after the Prime Minister Office announced a massive reduction in the prices of petroleum products, according to which, the price of petrol was cut down by Rs15.4 a litre and diesel by Rs7.9 a litre.
The PMO statement created confusion, causing a delay in the notification which was finally issued after midnight.
As per the notification issued by the Ministry of Finance, the federal government reduced the price of petrol in its third consecutive fortnightly review in light of a drop in the rate of global oil prices.
Effective from June 1, the new price of petrol has come down by Rs4.74 a litre to Rs268.36 from Rs273.10 a litre, the ministry stated.
Meanwhile, the price of high-speed diesel has also been slashed by Rs3.86 a litre to Rs270.22 a litre from its previous price of Rs274.08 a litre, it added.
"The prices of petroleum products have seen a decreasing trend in the international market during the last fortnight,” stated a notification from the finance ministry.
"The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market."
What was the confusion?
Later, the PMO admitted its mistake that it had issued the previous figures presenting them as new price which stated that petrol and diesel prices were cut by Rs15.4 and Rs7.9 respectively.
In the last review on May 15, the federal government had approved a massive cut of Rs15.39 per litre in the petrol price and the price of diesel was reduced by Rs7.88 per litre.
The prices of petroleum products are revised every 15 days in Pakistan adjusting them to the trend of global oil prices and the rupee’s exchange rate to the dollar. The Pakistani rupee has held steady recently.
About 85% of Pakistan's oil needs are imported, and the country has been struggling with a balance of payments problem and skyrocketing inflation, which was recorded at 17.3% year-on-year in April.
