Tag: price reduction

  • Federal ministers predict petrol price reduction, oil authority cautions against speculation

    Federal ministers predict petrol price reduction, oil authority cautions against speculation

    The Oil and Gas Regulatory Authority (OGRA) has cautioned against engaging in speculative discussions regarding the future pricing of petroleum products. This advisory comes in response to recent statements made by federal ministers suggesting potential reductions in Petroleum Oil and Lubricants (POL) rates during the upcoming fortnightly review.

    Caretaker Federal Commerce and Industries Minister Gohar Ejaz and Interim Federal Minister for Information and Broadcasting Murtaza Solangi had asserted last week that POL prices might see a decrease, attributing this possibility to the strengthening of the Pakistani rupee against the US dollar.

    Over the past two weeks, the rupee has appreciated by approximately Rs16 against the dollar, prompting these statements. It’s important to note that Pakistan, as a petroleum importer, conducts its transactions in US dollars.

    In the preceding fortnightly review, the caretaker government had substantially raised the prices of petrol and diesel, setting historic highs at Rs331.38 and Rs329.18 per litre, respectively.

    In light of the ministers’ remarks, OGRA has released a statement reiterating the importance of refraining from speculative discourse concerning petroleum product prices. The regulatory authority clarified that these prices in Pakistan are primarily influenced by international market rates and the prevailing dollar-to-ruble exchange rate.

    OGRA pointed out that recent times have witnessed an upsurge in global petroleum prices, while the rupee has demonstrated an improvement against the dollar. However, OGRA emphasised that there is still one week remaining before the announcement of the new pricing structure.

    The statement from OGRA further underscores that any conjecture regarding price fluctuations during this interim period is highly speculative and could potentially disrupt the efficient functioning of the petroleum supply chain.

  • Sugar price expected to drop below Rs150 per kg

    Sugar price expected to drop below Rs150 per kg

    The Punjab caretaker government successfully resolved the issue of high sugar prices in the country through negotiations with sugar mill owners. 

    A delegation from the sugar mill owners met with Punjab Caretaker Chief Minister (CM) Mohsin Naqvi. Both sides agreed to start sugarcane crushing on October 28. 

    According to ARY, sugar mill owners agreed to sell sugar to the Punjab government at Rs140 per kilogramme, and the provincial government planned to distribute the sugar stocks through special stalls in model markets.

    CM Naqvi acknowledged the financial difficulties faced by citizens and promised to lower sugar prices to provide relief.

    Despite the commerce ministry denying any sugar shortages, prices had surged to over Rs200 per kilogramme in various cities across the country. 

    This led citizens in Quetta and Sukkur to buy sugar at Rs220 per kg, while Karachi markets sold it for Rs180 to Rs200 per kg. 

    Similarly, sugar prices rose to Rs195 to Rs200/kg in Lahore, Jhang, and Faisalabad.

    Previously, it was reported that sugar prices reached a record high of Rs220 per kg in Balochistan’s retail markets. 

    Authorities initiated an investigation into the price increase and tightened scrutiny on sugar mill owners and dealers in Lahore. The Punjab government planned to take action to reduce the soaring sugar prices.

  • Here are the revised diesel and petrol prices effective July 16, 2023

    Here are the revised diesel and petrol prices effective July 16, 2023

    Finance Minister Ishaq Dar announced on Saturday that the prices of petrol and diesel will be reduced in the upcoming fortnightly review.

    During a televised address, the minister said that petrol prices will be reduced by Rs9 per litre, while diesel prices will see a decrease of Rs7 per litre. These adjustments were made due to changes in the international market over the past 15 days, with one petroleum product’s price increasing and the other decreasing.

    Following these revisions, the new price for petrol will be Rs253 per litre, and high-speed diesel (HSD) will be priced at Rs253.50 per litre. Minister Dar clarified that the petroleum development levy (PDL), which was previously raised to Rs60 per litre in response to the International Monetary Fund’s (IMF) request, will remain unchanged.

    The new prices will take effect on July 16, Sunday. Minister Dar also highlighted that the local currency has strengthened against the US dollar in the last 15 days, following Pakistan’s successful negotiation of a $3 billion Stand-By Arrangement (SBA) with the IMF.

    Here are the new diesel and petrol prices effective from tomorrow (July 16, 2023):

    Petroleum Product Previous Price Reduction Revised Price
    Petrol Rs263 per litre Rs9 per litre Rs254 per litre
    Diesel Rs260.50 per litre Rs7 per litre Rs253.50 per litre
  • Massive reduction in petrol price expected as Pakistan aims for one-third crude oil import from Russia

    Massive reduction in petrol price expected as Pakistan aims for one-third crude oil import from Russia

    Minister of State for Petroleum, Musadik Malik, has announced that the prices of petroleum products will witness a decrease once a continuous supply of oil from Russia is ensured.

    Speaking to a private news channel, Malik highlighted the substantial difference in prices that will benefit the masses once Pakistan starts fulfilling one-third of its domestic oil needs through imported Russian oil. He stated, “Our target is to obtain one-third of crude oil from Russia at a discounted rate. When we achieve this objective, petroleum products will be available at a cheaper price.”

    In response to a question about the expected decrease in fuel prices, Malik said, “I am unable to divulge the precise pricing details at this moment. However, it will lead to a significant difference.”

    While the state minister refrained from disclosing the current price, he emphasised that a substantial reduction in price would occur. He also mentioned that the first oil cargo has already arrived in Karachi, and the government is focused on maintaining a steady supply of Russian oil.

    The current deal involves 100,000 metric tonnes of oil, with the second consignment scheduled to arrive at the port next week.

    When asked about the possible effects of buying Russian oil and any potential issues at the global level, Malik expressed confidence that adhering to agreements and maintaining transparency would prevent any complications. He underscored the importance of responsible international engagement.

    Previously, Prime Minister Shehbaz Sharif expressed his fulfillment of another promise made to the nation, stating that the arrival of the first-ever Russian oil cargo marks the beginning of a new relationship between Pakistan and the Russian Federation. He described the day as transformative and emphasised the country’s commitment to achieving prosperity, economic growth, and energy security.

    Following its docking at the port, the authorities have commenced the process of transferring the Russian crude from the oil tanker to the Pakistan Refinery Limited for further processing and extraction of various final products. The transportation of crude oil to the facility is expected to be completed within the next 24 to 36 hours.

    It is worth noting that this is the first time Russian crude oil is being treated in Pakistan. The determination of the actual price of petroleum products in Pakistan will be possible only after the completion of the processing of this imported oil.

  • Petrol price slashed by Rs8 to Rs262 per litre for next fortnight

    Petrol price slashed by Rs8 to Rs262 per litre for next fortnight

    In a televised address on Wednesday, Finance Minister Ishaq Dar announced a significant reduction in the prices of petroleum products by the federal government.

    Effective from 12 am tonight, the price of petrol will be lowered by Rs8 per litre, bringing it down to Rs262 per litre. Similarly, the price of diesel will be reduced by Rs5 per litre, making it Rs253 per litre.

    Minister Dar said that these revised prices would remain unchanged for the next fortnight, providing stability and predictability for consumers. He further stated that this reduction in prices is part of a cumulative effort, as the government has already decreased the prices of petrol and diesel by Rs20 and Rs35 per litre respectively throughout the month of May.

  • Petrol price expected to decrease by Rs10 per litre for the next fortnight

    Petrol price expected to decrease by Rs10 per litre for the next fortnight

    The prices of petroleum products are expected to decrease starting from May 16, as the coalition government intends to provide some relief to the distressed public amidst the severe economic crisis and record inflation.

    According to reports in local media, petrol price will see a reduction of Rs10 per litre for the rest of May.

    It has been reported that the Oil and Gas Regulatory Authority (OGRA) has recommended a decrease in the prices of petroleum products. Based on these reports, the price of petrol may be reduced by Rs10 per litre, while the price of diesel is anticipated to decrease by Rs8 per litre.

    OGRA has submitted a summary to the government, and Finance Minister Ishaq Dar and other officials will seek the input of Prime Minister Shehbaz Sharif on the recommendations. The final decision will be announced today.

    The revised prices of petroleum products for the upcoming two weeks will be implemented after midnight on May 15.

    Earlier this month, the federal government announced a reduction of Rs5 per litre in the price of diesel, while the price of petrol remained unchanged. Presently, petrol is being sold at Rs282, HSD at Rs288, kerosene oil at Rs176.07, and light diesel oil at Rs164.68 per litre.