ISLAMABAD: The federal government on Thursday slashed petrol price by a measly Rs0.48 per litre, instead of the recommended Rs2.48 cut. The reduction takes effect from November 1, according to a notification by the Oil and Gas Regulatory Authority (Ogra).
According to a summary moved by Ogra before the ministries of petroleum and finance on Wednesday, the price of petrol was proposed to be slashed by as much as Rs2.48 per litre from Friday.
However, the government cut its price by Rs0.48 per litre to adjust a reduction in rate of petroleum levy to earn more revenue during the month of November. The new price of petrol stands at Rs112.76 against current price of Rs 113.24 per litre.
In line with escalation in global oil prices, Ogra had suggested a price hike of Rs0.18 per litre on High Speed Diesel (HSD) – which is widely used in heavy transport vehicles, but its price was cut by Rs0.20 per litre taking it to Rs116.75 from the existing rate of Rs116.95.
Meanwhile, the rate of kerosene oil, which is widely used in remote areas where Liquefied Petroleum Gas (LPG) is not available, has been decreased by Rs0.13 per litre from Rs108.13 to Rs108.00.
However, the cost of Light Diesel Oil (LDO) has remained unchanged, but the price of high-octane blending component, used in luxury vehicles, has gone down by Rs2.67 – from Rs143.90 to Rs141.23 – per litre.
Ogra had recommended increase in HSD, LDO and kerosene prices and suggested that they be adjusted in the petroleum levy, but the finance ministry ignored the proposal.