Advisor to the Prime Minister on Finance – Dr. Hafeez Shiekh – reveals that petrol prices in Pakistan may drop further even from 1st May.
On Wednesday, the Oil and Gas Regulatory Authority (OGRA) recommended the government to reduce up to Rs. 44.07 per litre in the prices of major petroleum products for the month of May. This is in wake of the massive decrease in oil prices internationally.
OGRA has sent a proposal to the Petroleum Division to have a decrease of Rs. 20.68 in the price of petrol per litre. It currently stands at Rs. 96.58 and the reworked price will showcase a drop to Rs. 75.9 per litre.
As for HSD, a decrease of Rs. 33.94 per litre has been proposed. Rs. 73.31 per litre as the new price of high-speed diesel (HSD) has been suggested, which is a drop of 31.6 per cent from the previous amount i.e. Rs. 107.25.
OGRA has also proposed that kerosene oil’s price should be reduced from Rs. 77.45 to Rs. 33.38 per litre, a whopping decrease of 44.07 rupees. As far as light diesel oil (LDO) goes, Rs. 24.57 from the current price have been recommended to be cut, making it drop to Rs. 37.94 per litre. Currently, it stands at Rs. 62.51 per litre.
On Thursday, the Finance Ministry will make an announcement about the reduction in the prices of petroleum products’ if Prime Minister Imran Khan actually approves OGRA’s proposal.
Constant reduction in petroleum prices
Before this proposal, petrol price was also reduced by Rs. 15 on 25th of last month. The government said then that the reworked price would be maintained for three months or might be reduced further, which looks like a very probable situation now.
This constant dip in petrol prices and other petroleum products is happening because US oil prices, along with global rates have been consistently falling ever since the coronavirus outbreak. The demand for oil has decreased massively and companies don’t even have enough storage for more oil.
Dr. Hafeez Sheikh said that because of the dip in the oil market and economy in general, the private sector companies must play their role to the fullest as the coming months are going to be extremely hard financially. He also told a media outlet that;
“Once the cost of petroleum products decreases, the cost of traveling and investment in the energy sector will be reduced as well.”
Giving some hope for the future, the advisor further revealed that the government will be introducing a fresh “corona budget” in the first week of June. This will not only help businesses to pop back and revise their profits, it will also help them cope with the aftereffects of the lockdown.