Islamabad – Another reduction in the prices of petroleum products has been made in the country, after which the prices of petrol and high-speed diesel have come down for the second consecutive day. The announcement of new prices will provide limited relief to fuel consumers.
According to the latest notification issued by OGRA, the price of petrol has been reduced by Rs 2.20 per litre, while the rate of high-speed diesel has been reduced by Rs 1.50 per litre.
After the latest price revision, the new price of petrol has been fixed at Rs 327.62 per litre. On the other hand, high-speed diesel will now be available at Rs 380.86 per litre.
This is the second consecutive time that the prices of both the major petroleum products have been reduced. Although the latest reduction is limited in terms of per litre, the continuous reduction can have some positive impact on the overall fuel expenditure of the consumers.
After a reduction of Rs 2.20 per litre in the price of petrol, the new rate has become Rs 327.62. Even a minor change in the price of petrol can directly impact the expenses of people who use motorcycles and cars daily.
Especially for daily commuters, the reduction in petrol prices could create a small dent in the monthly budget, although the actual impact will depend on the amount of consumption and the distance travelled.
After a reduction of Rs 1.50 per litre in the price of high-speed diesel, the new price has been fixed at Rs 380.86.
Diesel is widely used in freight vehicles, buses, transport and various business activities. Therefore, the impact of the reduction in diesel prices is not limited to the general consumer but can also affect transportation costs.
The continuous reduction in petroleum prices has come at a time when consumers are already trying to balance their monthly budgets due to high fuel costs.
However, it would not be appropriate to immediately view the new reduction as a major economic relief. Since the reduction per litre is limited, the significant difference in overall costs will only come out according to the amount of consumption.
Global crude oil prices, rupee and dollar exchange rates, government revenues and other related factors play an important role behind the change in the prices of petroleum products. Therefore, the future direction of prices will also be linked to the changes in these factors.
Overall, the second consecutive day of reduction in petrol and diesel prices has provided another minor relief to consumers. Now the focus will be on the global oil market and domestic economic factors, which can play an important role in determining future prices.