Govt is expected to further reduce petrol prices
ISLAMABAD: The federal government is expected to further reduce petrol prices to give relief to motorists.
Media reports indicate up to 10 rupees per liter decrease in the retail prices of petroleum products from midnight today.
The new petroleum prices will be effective from June 16, 2023.
As the Russian discounted crude oil has reached refineries in Pakistan, the government is expected to give more relief to motorists from 1st of July 2023. By this time, the oil refined from the Russian crude oil would have reached the petrol pumps.
Earlier, the government trimmed the petroleum prices starting from June 1, 2023. The government reduced the rate of petrol by Rs 8 per liter while Rs 5 relief was notified in the price of diesel (HSD and LDO).
Effective June 1, 2023, the price of petrol fell to Rs262 per liter from Rs270 per liter, registering a reduction of Rs8 per liter, the finance division said in a late-night statement.
Similarly, the HSD is being sold at Rs253/liter as against the previous Rs258. The LDO is available at Rs147.68/liter, Rs5 down from the previous Rs152.68.
The finance division said that government had decided to reduce the existing prices of petroleum products to provide relief to the consumers.
Russian discounted crude oil reaches refineries
Prime Minister Shehbaz Sharif shared the good news with the people saying that the first Russian crude oil cargo today reached Karachi.
Pakistan has purchased Russian crude oil at a discounted rate in comparison with the international market price.
“Today is a transformative day. We are moving one step at a time toward prosperity, economic growth, energy security, and affordability,” PM Shehbaz said.
He stated that the arrival of the first-ever Russian oil cargo in Pakistan was the beginning of a “new relationship between Pakistan and the Russian Federation”.
“I commend all those who remained part of this national endeavor and contributed to translating the promise of Russian oil import into reality,” the prime minister added.
The United States and European Union have capped the Russian crude oil price at $60/barrel.
However, it is believed that the Pakistan government has purchased Russian oil at a lower than this price. The government, nonetheless, will not disclose the actual price of the discounted Russian crude oil as per its commitment to the Russian authorities.
The Pakistani government took two advantages in this deal _ the price of oil is lower than the international market.
Secondly, Pakistan had made payments in Chinese yuan as Russian President Putin has linked the payments of oil and gas sales with Russian or other currencies excluding the US dollars.
