- Nominal relief of 0.34 paisas in petrol price, HSD price cut by Rs 4.51
Government decided to cut petroleum prices by up to Rs4.51 per litre in line with the reduction in global oil prices and a strengthening rupee effective from May 1, 2014.
Prime minister Nawaz Sharif approved a summary moved by Oil and Gas Regulatory Authority (Ogra) recommending that petrol prices should be decreased by Rs0.34 per litre, high speed diesel (HSD) by Rs4.51, kerosene oil (SKO) by Rs3.08, light diesel oil (LDO) by Rs0.93 and high octane blended component (HOBC) by Rs1.94 per litre.
According to an official, price of HSD, widely used in heavy transport vehicles and the agriculture sector, has been reduced by Rs4.51 litre. The move is expected to have a major impact on prices of commodities and provide relief to the farmers.
The new price of HSD will be Rs109.34, down from its current price of Rs113.85 per litre.
Unlike HSD, petrol would witness only a minor change of Rs0.34 per litre. Its rate will change from Rs108.31 to Rs107.97.
The new price of kerosene would be Rs98.07 compared to its current price of Rs101.15, registering a decline of Rs3.08 per litre.
Similarly HOBC price is being reduced to Rs131.14 and light diesel oil to Rs94.13.
According to a statement, Finance Minister Ishaq Dar and Prime Minister Nawaz Sharif, currently in London, discussed the cumulative reduction in POL prices over the past three months. They noted that economic policies, stabilisation of the rupees and increase in foreign exchange reserves have stimulated the recent reduction in POL prices.
Since March, petrol prices have been reduced by Rs4.71, diesel prices by Rs7.41, and kerosene oil by Rs8.69.