By On September 15, 2024, the federal government announced significant reductions in fuel prices. Petrol will see a decrease of Rs10 per litre, dropping from Rs259.10 to Rs249.10. High-speed diesel (HSD) will also experience a cut, with its price falling by Rs13.06 per litre, from Rs262.75 to Rs249.69. These new rates will take effect from midnight tonight and remain in place for the next fortnight.
Other Fuel Price Adjustments
In addition to petrol and diesel, the price of Kerosene Oil has been reduced by Rs11.15 per litre, from Rs169.62 to Rs158.47. Light Diesel Oil will now cost Rs12.12 less per litre, falling from Rs154.05 to Rs141.93. These adjustments reflect fluctuations in global oil markets and are intended to provide relief to consumers.
Federal Minister’s Comments
Federal Minister for Petroleum, Musadik Masood Malik, explained that the reduction in fuel prices is a result of declining international petroleum prices. He also noted that fluctuations in global prices can lead to speculation, making future price predictions uncertain. Malik highlighted that Pakistan’s domestic oil prices are influenced by global market trends and the dollar-rupee exchange rate.
Impact and Policy Insights
Malik pointed out that petrol prices have been reduced by Rs47 per litre since May, and there has been a gradual decline in the smuggling of Iranian petrol. He emphasized that the country maintains a 21-day strategic stock of petroleum products and noted that smuggling cannot be legalized.
The minister also addressed concerns about the country’s depleting gas reservoirs. He warned that granting additional gas connections could lead to a severe gas crisis and supported the previous government’s decision to restrict new connections.
Conclusion
The government’s decision to cut fuel prices is aimed at alleviating some of the financial pressure on consumers amidst ongoing global market fluctuations. The reductions in petrol, diesel, and other fuels are expected to offer temporary relief while maintaining regulatory focus on market stability and anti-smuggling measures.
