ISLAMABAD: Prime Minister Shehbaz Sharif led federal government has announced a reduction in fuel prices starting from May 16, following recommendations from the Oil and Gas Regulatory Authority (OGRA), as per a notification from the finance ministry.
The new prices, effective from midnight, will last for the next fortnight. The price of petrol has been reduced by Rs15.39, bringing it down to Rs273.10 per litre from the previous Rs 288.49. Similarly, the price of high-speed diesel (HSD) has been cut by Rs7.88, making the new rate Rs274.08 per litre compared to the earlier Rs 281.96 per litre.
Additionally, the price of light diesel oil (LDO) has decreased by Rs7.54, and kerosene oil by Rs9.86.
The government continues to impose a petroleum levy of Rs60 per litre on both petrol and HSD, with an expected revenue collection of Rs936 billion for the current fiscal year, surpassing the budgeted target of Rs 869 billion.
The government expects that these price reductions will boost the sale and consumption of petroleum products, which saw a 4% decrease month-on-month in April 2024 and a 6% drop year-on-year.
