The Oil and Gas Regulatory Authority (OGRA) has announced a reduction in the price of Liquefied Petroleum Gas (LPG), providing relief to consumers who depend on LPG.
According to a recent notification, LPG prices have been cut by Rs3.87, bringing the cost down to Rs234 per kilogramme. This new rate is effective immediately.
This development follows a significant cost reduction in production by the Oil and Gas Development Company (OGDCL), attributed to the arrival of three ships carrying imported LPG.
The increased supply has enabled OGDCL to lower production costs, subsequently leading to the reduced consumer prices.
In a related development, the prices of petrol and diesel in Pakistan are also anticipated to drop from June 1. According to sources, petrol prices are expected to decrease by Rs5 per litre, while diesel prices may see a reduction of Rs4 per litre.
The Ministry of Finance will announce the new rates after consulting with the Prime Minister.
The OGRA summary proposing the price reductions will be submitted to the Petroleum Division by May 31st, sources added.
This move is part of a broader strategy to alleviate the financial burden on the public by ensuring affordable fuel prices amidst fluctuating global oil markets.
Indus Motor Company, the manufacturer of Toyota vehicles in Pakistan, has announced a significant price adjustment for its Yaris sedan range.
This adjustment, effective from Thursday, reflects a reduction in prices ranging from Rs73,000 to Rs133,000.
The revised pricing structure for the Yaris lineup is as follows: the 1.3 MT LO, 1.3 CVT LO, and 1.3 MT Hi variants will now be priced at Rs4.326 million, Rs4.616 million, and Rs4.586 million, respectively, representing a reduction of Rs73,000 for each model.
Additionally, the price of the Yaris CVT Hi has been lowered by Rs133,000 and is now priced at Rs4.766 million.
According to Business Recorder, this decision comes in response to the recent imposition of a 25 per cent sales tax on vehicles priced above Rs4 million.
By implementing these price cuts, Indus Motor Company aims to ensure that the Yaris remains within the 18 per cent sales tax bracket.
Initially, the government’s decision to raise the sales tax was targeted at vehicles with engine sizes of 1,400 cc and above, as well as those priced above Rs4 million.
However, it later extended to include SUVs below the 1,400cc threshold, prompting manufacturers to advocate for a Rs4 million price cap.
As a consequence of this tax adjustment, certain models from Toyota, Honda, and Suzuki are now subject to the increased sales tax regime.
In a strategic move to stimulate demand, Lucky Motor Corporation, formerly known as Kia Lucky Motors Pakistan, has announced a significant reduction in the prices of its popular compact SUV, the Sportage.
The revised prices, effective from March 4, have been lowered by up to Rs300,000.
The basic variant, Alpha, has witnessed a substantial decrease of Rs250,000, now priced at Rs7.3 million.
Additionally, the prices of Sportage’s FWD, AWD, and limited black edition variants have all been reduced by Rs300,000. Consequently, the new prices stand at Rs7.74 million, Rs8.47 million, and Rs9 million, respectively.
This move comes amid challenging times for the automobile sector in Pakistan, which experienced a significant 50% year-on-year decline in sales during the first half of fiscal year 2024.
Experts anticipate that Lucky Motor Corporation’s decision to lower Sportage prices could contribute to a resurgence in its sales.
It’s important to note that while Sportage undergoes a price adjustment, other models such as Picanto and Stonic will maintain their current pricing.
Kia had already implemented several promotional offers, including installment plans, cashback, and free registration, to entice potential buyers.
This latest price reduction aligns with the industry trend, as competitors like Chery Tiggo and Changan Oshan have also lowered their prices by Rs300,000.
Industry observers attribute Sportage’s recent sales challenges to intensified competition, particularly with the introduction of the Corolla Cross in the same price range.
Although the latter is a hybrid electric vehicle (HEV), it has further heightened the competition in the market.
Despite Lucky Motor Corporation’s efforts, reports suggest that the previously offered interest-free loan policy and other incentives haven’t generated substantial demand.
Furthermore, a cashback offer of Rs150,000 on booking across all Sportage variants, which was in place before the price adjustment, failed to attract significant attention from potential buyers.
The Oil and Gas Regulatory Authority (OGRA) has implemented a modest reduction in the price of Liquefied Petroleum Gas (LPG) by Rs0.81 per kg, effective from March 01, 2024.
The previous consumer price for LPG stood at approximately Rs257.59 per kg. With the latest adjustment, consumers can now avail themselves of LPG at the revised rate of Rs216.79 per kg, indicating a notable decrease.
For consumers relying on an 11.8 kg LPG cylinder, the cost has been adjusted to Rs3,030.12. This represents a decrease of Rs9.51 per cylinder from the previous price of Rs3,039.63, providing some relief to households and businesses alike.
The move by OGRA to reduce LPG prices aims to alleviate the financial burden on consumers amid fluctuating economic conditions.
This adjustment reflects the Authority’s commitment to ensuring fair pricing and accessibility of essential commodities for the public.
Consumers are encouraged to verify and adopt the new rates, as OGRA continues its efforts to maintain transparency and affordability in the energy sector.
As announced in an official notification by the Finance Division, the revised prices for petroleum products, applicable from December 16 to December 31, have been endorsed by the Oil and Gas Regulatory Authority (OGRA).
The recalibrated rates indicate a decline in petrol prices to Rs267.34 per litre, while the diesel rate has seen a reduction of Rs13.50 per litre, now standing at Rs276.21 per litre, according to the Finance Division’s official statement.
Furthermore, the cost of kerosene oil has been curtailed by Rs10.14 per litre, settling at Rs191.02, and light diesel oil is now priced at Rs164.64 per litre following a reduction of Rs11.29.
This adjustment comes in response to the notable decrease in global oil prices over the past two weeks, a factor contributing to the anticipation of a downward trend in fuel prices during the fortnightly review.
It’s imperative to note that the government undertakes a bi-weekly reassessment of petroleum product prices, aligning them with international market dynamics and the exchange rate of the rupee. This latest revision reflects a proactive approach by the authorities to mitigate the economic impact on the general populace.
The government is poised to provide significant relief by potentially reducing petrol and diesel prices by Rs13 and Rs15 per litre, respectively, in the upcoming fortnightly pricing update.
This anticipated reduction is attributed to a noteworthy downturn in international petroleum and diesel prices over the past fortnight.
The stability of the local currency at a weighted average of approximately PKR 284.33 per USD further contributes to this potential relief.
Current estimates as of December 2008 reveal a global decline in petrol and diesel prices by 5.44 per cent and 5.6 per cent, reaching $94.95 and $100.05 per barrel, respectively.
As the next pricing update is still a week away, the future trajectory of these prices hinges on global market movements and exchange rate fluctuations.
Notably, in the preceding fortnight, the government maintained the petrol price at Rs281.34 while reducing the HSD price by Rs7 to Rs289.71 per litre.
On Thursday, the caretaker government announced its decision to maintain the current petrol price at Rs281.34 per litre while implementing a reduction of Rs7 per litre for high-speed diesel (HSD) for the upcoming two weeks.
— Ministry of Finance, Government of Pakistan (@Financegovpk) November 30, 2023
As per the official notification from the finance ministry, the revised price for high-speed diesel will be Rs289.71 per litre starting on December 1.
Additionally, the prices for kerosene and light diesel oil have decreased by Rs3.82 and Rs4.52, respectively.
Following these adjustments, kerosene will now be priced at Rs201.16 per litre, and light diesel oil will be available at Rs175.93 per litre.
This decision comes in response to factors such as an IMF review and the recent global decline in oil prices.
Notably, the postponement of a ministerial meeting by Opec+ (the Organisation of the Petroleum Exporting Countries and allies, including Russia) to November 30 contributed to a midweek tumble in global oil prices.
Brent crude futures experienced a 0.4 per cent decline, down 37 cents to $80.21 per barrel, while US West Texas Intermediate (WTI) crude futures lost 0.4 per cent, down 29 cents to $75.25.
In a move similar to what Toyota did earlier, Honda Atlas Cars (Pakistan) Limited announced on Wednesday that it is reducing the prices of its vehicles, especially the popular Honda City lineup.
This decision was made due to the significant strengthening of the Pakistani rupee (PKR) against the US dollar.
Through an official circular, Honda Pakistan disclosed the updated ex-factory prices for all its car models, reflecting reductions of up to PKR 300,000.
This substantial price drop is expected to make Honda vehicles more affordable for a broader consumer base.
After these adjustments, the price of the most budget-friendly Honda car in Pakistan, the City MT 1.2L, now stands at Rs4.699 million following a reduction of Rs100,000.
Moreover, the top variant, the Aspire CVT 1.5L, is now available for Rs5.849 million after a cut of Rs130,000.
The most significant price changes have been applied to the popular Honda City lineup, generating excitement among potential buyers.
Indus Motor Company, the leading assembler of Toyota-brand vehicles in Pakistan, has made a significant move to benefit its customers.
In a recent announcement sent to its dealers on Tuesday, the company revealed a substantial reduction in car prices, effective October 24. This decision was prompted by the recent strengthening of the Pakistani rupee against the US dollar.
Following this development, the basic Yaris model 1.3MT LO is now more affordable, with a price decrease of Rs100,000, or 2.2 per cent, bringing its new price to Rs4.399 million.
Similarly, the top variant, 1.5 CVT Aero, will now be available at Rs5.849 million after a reduction of Rs120,000.
The Toyota Corolla’s variant prices have been reduced between Rs200,000 and Rs250,000. Furthermore, Toyota’s pickup Revotrucks are now more budget-friendly, with price reductions ranging from Rs450,000 to Rs790,000.
One of the most notable changes is seen in the Fortuner G4x2 Petrol STD, which will now be priced at Rs14.499 million after a substantial reduction of Rs1.31 million, or 8.3 per cent.
This price adjustment follows the footsteps of other major players in the industry, including MG Motors and Lucky Motor Corporation (LMC), both of which have also announced price reductions for their vehicles.
The automobile sector in Pakistan has faced challenges recently, mainly due to fluctuating exchange rates and restrictions on imports.
The rupee experienced a significant depreciation against the dollar, reaching a record low of Rs307.1 on September 5.
However, it has since recovered, stabilising around the Rs279–280 level. This positive trend aligns with the efforts of the caretaker government, which took measures against smugglers and hoarders, contributing to the currency’s recovery.
Apart from currency fluctuations, the auto sector was affected by previous government policies, including import restrictions aimed at preserving foreign exchange reserves.
Additionally, higher finance costs and a considerable rise in car prices led to a decrease in consumer demand. In the first quarter of FY24, car sales in Pakistan plummeted to 20,983 units, marking a 40 per cent decline compared to the same period the previous year.
Here are the latest prices of all Toyota cars in Pakistan:
Lucky Motor Corporation (LMC) has announced a substantial reduction in the prices of its KIA vehicles, with savings of up to Rs500,000 for customers. This decision comes as a result of the recent strengthening of the Pakistani rupee (PKR) against the US dollar.
The company stated, ” Owing to the recent appreciation of PKR against the USD, we have decided to pass the benefit to our valued customers by reducing the prices of our vehicles.”
Among the models affected, the Sorento variants, including the 3.5L FWD, 2.4L AWD, and 2.4FWD, have seen the most significant price reductions, each receiving a cut of Rs500,000. Their new prices are now Rs11.29 million, Rs11.2 million, and Rs10.3 million, respectively.
It’s important to note that these reduced prices apply exclusively to customers choosing the full payment option.
Other KIA models have also seen price reductions, with the Sportage (Black Limited Edition) receiving a discount of Rs350,000, Sportage AWD/FWD models getting a reduction of Rs150,000, and the Picanto AT receiving a Rs100,000 price cut.
These new prices will come into effect on October 6, 2023. The company has clarified that any new or additional government-imposed duties and taxes applicable at the time of vehicle delivery will be the responsibility of the customer.
This price reduction is particularly significant in light of the recent challenges faced by the auto industry in Pakistan, which has experienced rising car prices due to the rupee’s previous depreciation against the US dollar.
However, the rupee has been steadily strengthening, with 21 consecutive sessions of improvement in the inter-bank market. This trend aligns with the caretaker government’s efforts to combat currency smuggling.
