ISLAMABAD: After further decline in international market, the government has decided to decrease petrol price by 13.7% from February 1 to lowest level in the last seven years.
The Oil and Gas Regulatory Authority (Ogra) has already recommended a significant drop in prices across the board for petroleum products to the government.
According to Ogra’s recommendations, petrol prices in February will drop by Rs10.75 per litre, or 13.7% to Rs67.53 per litre. High speed diesel (HSD) prices are expected to drop by Rs8.80 (10.2%) to Rs77.43 per litre. For high octane blended component (HOBC) prices are likely to decline by Rs14.85 (16.1%) to Rs77.15 per litre, kerosene by Rs12.92 (18%) to Rs59.00 per litre and light diesel oil by Rs11.84 (17.5%) to Rs55.66 per litre.
After implementation, petrol prices in Pakistan will have declined by 41% from their October 2013 peak, when petrol sold for Rs113.89 per litre. Brent crude prices, the global oil benchmark traded in London, has declined by 58% during that same period and is currently trading at $49 per barrel, a price not seen since March 2009. Oil prices in Pakistan typically lag global markets due to the nature of the supply chain.
