Pakistan govt announces Rs 10.20 reduction in petrol price ahead of Eid ul Adha

Islamabad: In a major relief for inflation-hit masses in cash-strapped Pakistan, the government has slashed the prices of petrol and high-speed diesel (HSD) by Rs 10.20 and Rs 2.33 per litre respectively ahead of the Eid ul Adha festival.

The price cut, effective from Saturday, will bring the price of petrol to Rs 258.16 per litre while the price of HSD will be Rs 267.89 per litre, The Express Tribune newspaper quoted a statement from the Prime Minister's Office on Friday.

The Finance Division, which usually reviews the fuel prices every 15 days, issued an official notification for the latest price cuts and said the new prices would be applicable for the next fortnight.

The notification said that the Oil and Gas Regulatory Authority (Ogra) had worked out the consumer prices, based on the price variations in the international market. The move to slash the prices of petroleum would benefit the Pakistani people who have been hit by double-digit inflation.

Pakistan has been hit by inflation of above 20 per cent since May 2022 as the cash-strapped country navigated reforms as part of an International Monetary Fund bailout programme.

However, annual inflation slowed for the fourth month to 17.3 per cent in April, the lowest level in nearly two years and significantly less than the record 38 per cent recorded in May 2023, according to official data.

"The prices of petroleum products have seen a mixed trend in the international market during the last fortnight," it said.

On May 31, the government reduced the prices of petrol and HSD by Rs 4.74 per litre and Rs 3.86 respectively, Geo News reported.

The fuel prices have been witnessing a downward trend and have been reduced thrice consecutively in the last one-and-a-half-month due to the reduction in global oil prices, it said.

Earlier in the day, Prime Minister Shehbaz Sharif announced a significant reduction in electricity tariffs for industries cutting rates by Rs 10.69 per unit.

The reduction, made on the recommendation of the National Electrical Power Regulatory Authority (Nepra), aims to boost exports and industrial production.

The new electricity price per unit for the industrial and export sectors will now be Rs 34.99.