Business

Govt slashes petroleum products’ prices by up to Rs30 per litre

Published

2 years ago

Farwa

Petrol price decreased by Rs12 per litre.
Diesel price reduced to Rs258 per litre.
Reduction comes after oil price fell in int’l market.

ISLAMABAD: The Pakistan Democratic Movement (PDM)-led federal government Monday announced decreasing the price of petrol by Rs12 per litre to Rs270 per litre after a fall in the international oil rate.

The rates will come into effect at 12am tonight and remain in place for the next fortnight, Minister for Finance and Revenue Senator Ishaq Dar said during a televised address.

The rates of petroleum products (POL) have been slashed by up to RS30 per litre, as the government “tries to give relief to the masses during every fortnightly review”, the minister said.

Product	Existing prices w.e.f 1.05.2023	New prices w.e.f 16.05.2023	Decrease
Petrol	Rs282	Rs272	Rs12
High-speed diesel	Rs288	Rs258	Rs30
Kerosene	Rs176.07	Rs164.07	Rs12
Light diesel oil	Rs164.68	Rs152.68	Rs12

The finance minister appealed to the transporters to provide “fair” relief to the masses in light of the price reduction as the POL products rate affects a host of other commodities.

The appeal came as the cash-strapped nation faces runaway inflation, which remains at a historic high of 36.4% — the fastest in South Asia, even leaving behind the defaulted nation of Sri Lanka.

“In view of the declining price trend of petroleum products in the international market, Government has decided to reduce the existing prices of petroleum products in order to pass on the benefits […] and provide maximum relief to the masses,” the Finance Division said in a statement later.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

2 days ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

2 days ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.