New Prices of Diesel, Petrol on Feb 16, 2025
Staff Report:
The government has reduced the prices of petroleum products in an order to provide relief to the consumers effective from February 16, 2025.
The prices of petroleum products have been reduced in line with fluctuation in global oil prices.
The Oil and Gas Regulatory Authority (OGRA) had proposed revision in the prices of petroleum products following fluctuations in the international oil market.Petrol Price Slashed by Rs10, Diesel 13 Per Liter
The price of High Speed Diesel (HSD) has been reduced by Rs. 4.00 per liter.The oil industry calculation was that price of high speed diesel would come down by Rs 9:11 per liter.
High speed diesel is widely used in transport and agriculture sectors. The reduction in its price will also have inflationary impact on the consumers.
The price of diesel has been slashed to Rs. 263.95 against old price of Rs 267.95 per liter.
The government has also reduced the price of Petrol (MS) by Rs. 1.00 per liter, settling at Rs. 256.13 against its old price of Rs 257.13 per liter.
Petrol is used in motorbikes and cars and is an alternative to the CNG especially in Punjab province where CNG stations have been operating on imported gas or they were shut down for the last several years.
Kerosene oil, that is commonly used by low-income households esecpaily in northern parts of the country where LPG was not available for cooking purpose, has also witnessed a price reduction. The price of Superior Kerosene Oil has been lowered by Rs. 3.20 to Rs. 171.65 per liter compared to its old price of Rs 174.85 per liter.
Light Diesel Oil will now be sold at Rs. 155.81 per liter against old price of Rs 161.06 per liter, after registering a decrease of Rs. 5.25 per liter
The recent reduction in prices of petroleum products will provide some relief to the consumers who have been facing rising inflation.
The local prices are calculated considering current government taxes, the current pricing of IFEM (presumably Import Freight and Margin), and a zero dollar exchange adjustment.
The data also notes that PMG (Petrol) premium is based on $7.75 per barrel. The premium is paid on the import of petrol. The oil industry had imported three vessels of the petrol.
The government is currently charging Rs 60 per liter on petroleum levy (PL) Petrol and high speed diesel each.
The petroleum levy was supposed to invest in the development of oil sector like setting up storages but it has never been used. The government used this revenue to meet current expenditures.
