OGRA has sent a proposal for the reduction in the prices of petroleum products by Rs18 per liter and diesel by Rs33. The final approval will be given by the prime minister.
A day earlier, Prime Minister Shehbaz Sharif sought a summary from the petroleum and finance ministries for a reduction in oil prices, following a fall in global fuel prices.
“I have ordered the ministries of petroleum and finance to pass on the reduction in the prices of POL [petroleum, oil and lubricant] products in the international market to people. They have faced economic difficulties and the relief is their right,” the premier said in a tweet late on Tuesday.
Global benchmark Brent crude tumbled $7 on Tuesday to settle below $100 a barrel for the first time in three months on a strengthening dollar, Covid-19 curbs in top crude importer China, and rising fears of a global economic slowdown, Reuters reported.
Brent crude futures settled $7.61, or 7.1% lower, at $99.49 a barrel, its lowest since April 11. US West Texas Intermediate crude was down $8.25, or 7.9%, at $95.84, also the lowest in three months.
PM Shehbaz issued the directives for the summary while presiding over a meeting in Islamabad, the PM Office said. Senior officials of the Oil and Gas Regulatory Authority and other ministries and departments attended the meeting.
“The people sacrificed, they should get the full fruits of it. People have had a difficult time, now they have the right to get full relief,” he said. The development was also shared by Information Minister Marriyum Aurangzeb in a series of tweets.
It is expected that petrol prices would go down by Rs8 and diesel by Rs20, sources told Aaj News, adding that the existing levy would remain unchanged.
Petroleum levy
PM Shehbaz would have the final take on providing relief to the public by adjusting the tax levy.
PML-N leader Maryam Nawaz while addressing a rally in Lahore last week said the government would provide relief to the people once oil prices decrease in the international market.
Federal Finance Minister Miftah Ismail on Tuesday told a private news channel that the summary of the reduction in petroleum prices would be forwarded to PM Shehbaz on Wednesday (today) for “necessary action”, the Associated Press of Pakistan reported.
“After receiving the summary from the petroleum division, we will try to send it to the PM House,” he said, “prices of petroleum would be reduced on the directives of the PM for the public interest.”
The government on July 1 increased petrol and diesel prices by Rs14.85 per litre in view of the fluctuation of petroleum prices in the international market and exchange rate variation.
The price of petrol is Rs248.74 per litre while the price of high-speed diesel was increased by Rs13.23 per litre and the new price is Rs276.54 per litre.
