Following a significant drop in petroleum prices, Caretaker Prime Minister Anwaarul Haq Kakar on Monday directed the chief ministers of all provinces to ensure a reduction in the cost of essential goods and services for consumers.
The initiative aims to alleviate the inflationary pressure, which many link to rising fuel prices and subsequent transportation costs.
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The caretaker government on Sunday slashed the prices of petrol by Rs40 per litre in its fortnightly review owing to the strong exchange rate and overall decrease in oil prices in the international market.
Consequent to substantial reduction in fuel prices, I have directed the concerned authorities at Federal and Provincial level to activate a strict price control mechanism. I urge all honorable Chief Ministers to ensure that prices of essential commodities and services are reduced…
— Anwaar ul Haq Kakar (@anwaar_kakar) October 16, 2023
“Consequent to substantial reduction in fuel prices, I have directed the concerned authorities at Federal and Provincial level to activate a strict price control mechanism,” the premier wrote on his X handle.
“I urge all honourable Chief Ministers to ensure that prices of essential commodities and services are reduced correspondingly. All efforts should be directed towards transferring the benefit of reduction in petroleum prices to the people of Pakistan. Strict implementation be ensured.”
The price of petrol has been reduced from Rs323.38 to Rs283.38 per litre, effective from today, October 16. The government has also reduced the price of high-speed diesel (HSD) by Rs15 per litre, bringing it down from Rs318.18 to Rs303.18 per litre.
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The price of kerosene oil, whose consumption increases significantly during winters in remote areas, has been reduced to Rs214.85 per litre, marking a Rs22.43 reduction per litre.
Meanwhile, the government has increased the petroleum levy by Rs5 per litre on HSD, raising it from Rs50 to Rs55 per litre. A petroleum levy of Rs60 per litre is charged on petrol.
The government has also increased dealers’ margins by Rs0.41 per litre on petrol and diesel, raising them from Rs7.82 to Rs8.23 per litre.
Oil marketing companies (OMCs) have seen their margins increase by Rs0.33 per litre, from Rs7.08 to Rs7.41 per litre on petrol, and by Rs0.47 per litre on HSD, from Rs6.94 to Rs7.41 per litre.