In a statement, the finance ministry announced that Pakistan lowered the price of petroleum products on Friday by up to Rs14 per liter. As long as oil prices stay low globally, this step should reduce the impact of inflation on the general public.
The ministry declared that the cost of gasoline had lowered by Rs. 14 and the cost of high-speed diesel had decreased by Rs. 13.50 per liter. After the decreases, the new prices per liter for gasoline and diesel are Rs. 267.34 and Rs. 276.21, respectively, for the next two weeks.
The statement stated, without explanation, that the “Government of Pakistan has decided to revise the prices of petroleum products for the fortnight starting from December 16, 2023, as recommended by the Oil and Gas Regulatory Authority (OGRA).”
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The government also stated that the cost of a liter of kerosene oil has decreased from Rs 201.16 to Rs 191.02, a decrease of Rs 10.14. Furthermore, light diesel oil (LDO) was reduced in price from Rs 175.93 to Rs 164.64 per liter, a decrease of Rs 11.29.
The notice did not specify why there would be such drastic reductions, but local media sources had foreseen the move, attributing it to a significant drop in world oil prices.
Additionally, this occurs during a week in which the value of the Pakistani rupee increased by 0.09 percent against the US dollar on Friday, 0.04 percent on Thursday, and 0.06 percent on Wednesday.
After a $3 billion IMF loan was approved in July, Pakistan is still struggling to find a way to achieve economic stability in the face of growing inflation and declining foreign exchange reserves.
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