The federal government is expected to reduce the price of petrol by Rs5 per litre starting from January 16. According to reports, the Oil and Gas Regulatory Authority (OGRA) has proposed a decrease of Rs5 per litre for petrol, Rs2 for diesel, Rs3 for kerosene oil, and Rs1.75 for LSD.
Insiders at OGRA mentioned, “The finalization of the new prices for Petroleum, Oil, and Lubricants (POL), effective from January 16, 2024, will be concluded on January 15.”
In the preceding fortnight, the government opted to maintain the prices of petrol and high-speed diesel (HSD) without any alterations.
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The decision, as per the notification, aligns with the recommendation put forth by the Oil and Gas Regulatory Authority (Ogra), taking into account the prevailing international oil prices.
The current petrol and diesel prices are:
Petrol: 267.34
Diesel: 276.21
Possible Factors of Decline in Petroleum Prices
The global market has experienced a notable decline in crude oil prices, with British Brent crude oil currently at $77 per barrel and American West Texas Intermediate crude oil at $71 per barrel.
Even Russian crude oil, which had previously dropped to $71 per barrel, is now indicating a gradual upward trend.
The recent decrease in oil prices was initiated by Saudi Arabia’s choice to reduce crude oil prices by over one percent, leading to a 27-month low. Simultaneously, the US dollar has been on a declining trajectory against the Pakistani rupee, falling from Rs 288 to Rs 280 in the past month.