The federal government decided to keep petrol and diesel prices unchanged for the next two weeks. Earlier, reports indicated that the price of petrol may drop by Rs. 5-10/liter while diesel was expected to see a decrease of Rs. 15-20/L.
The Ministry of Finance said in its notification that the government decided to keep the current price of high-speed petrol and diesel unchanged. Meanwhile, Kerosene Oil and Light Diesel Oil (LDO) prices saw a decline of Rs. 10 / liter. The new prices will remain in effect through April 15, 2023.
The new prices will be effective from April 1, 2023.
current fuel prices
Petrol price remains Rs. 272/litre, while diesel stays at Rs. 293/l. Meanwhile, after Rs. 10 reduction, kerosene oil will now cost Rs. 180.29 compared to the old rate of Rs. 190.29. And LDO will now cost Rs. 174.68 vs. Rs. 184.68 as it also saw a drop of Rs. 10 / liter.
The government has decided to keep the existing prices of MS (gasoline) and high-speed diesel unchanged and reduce the prices of kerosene oil and light diesel oil by Rs 10 from 1 April 2023 to 15 April 2023. pic.twitter.com/SYPy6uk2Jt
– Ministry of Finance (FinMinistryPak) March 31, 2023
Earlier today, the media reported that the Oil and Gas Regulatory Authority (OGRA) had sent a brief to the government, recommending a cut of up to Rs. 15 in the price of petroleum products. Body suggested reduction of Rs. 10-12/liter petrol price Rs. 10-15 / liter at the price of diesel.
However, the regulator also suggested the government to keep prices unchanged to overcome the budget deficit.
Global trend and petrol prices in Pakistan
As per the global trend, the price of petrol shows a decline of Rs. 13-14/litre, but due to exchange loss, the government was expected to reduce the price by Rs. 4-5 / liter for the next 15 days. As far as diesel is concerned, the ex-refinery diesel price shows Rs. 34/liter reduction, but exchange loss on diesel exceeds Rs. 100 / liter needs to be adjusted. Henceforth, the government was expected to announce a reduction of Rs. 15-20/L.
Industry sources believe that this is the right time for the government to adjust exchange losses. The decline in crude oil prices has provided the ruling coalition with sufficient fiscal space to absorb oil companies that are facing financial problems as they have not yet received the full amount of exchange losses.
Currently, the exchange rate is heavily tilted towards the dollar, which is a major obstacle for the government in lowering oil prices in the country. Industry experts have estimated the exchange rate for the next two weeks at Rs. 283 Sets the previous filter rates.