Govt slashes petrol prices by Rs 10 per litter

The federal government on Thursday announced to fix the new price of petrol at Rs 214.80 per litre with a reduction of Rs10 in the price of petrol.

While announcing a significant reduction in the prices of petroleum products in Pakistan Television News, Finance Minister Ishaq Dar said that the new price of high speed diesel is Rs 227.80 with a reduction of Rs 7.50 per liter, and the new price of kerosene oil is Rs171.83 with a reduction of Rs 10 per litre.

The Minister said the price of light diesel has been fixed at Rs169 with a reduction of Rs28.28 per litre. He said that the application of these prices in petroleum will be effective from midnight of December 15 to December 31, 2022.

Ishaq Dar said that the decrease in the prices of petroleum products is due to the last quarter of this fiscal year which started on October 1st and continues till December 15th.

He said that the reduction in petroleum prices is a part of Prime Minister Shehbaz Sharif’s campaign to provide relief to the people and in this regard, the government is focusing its attention on providing relief to the people.

Ministry sources, earlier reported that petrol is currently being purchased at $76 to $77 per barrel. Levy charges on petrol are Rs50 per litre, while sales tax on all petroleum products remains zero.

Sources said that the profit margin of oil marketing companies might also be increased from December 16 on petrol and diesel.

Dr Musadik, Bilawal make contradictory claims on buying cheaper Russian oil  

Earlier this week, following a Pakistani delegation visited Moscow, Petroleum Minister Dr Musadik Malik told media that Russia has confirmed the crude oil availability of 100,000 barrels per day to Pakistan, and that a delegation from Moscow would visit Islamabad in January to set the terms of a deal, including rates and mode of payment.

Following his Russia visit, Minister of State for Petroleum Musadik Malik, who led the Pakistan delegation, told a news conference that Russia had confirmed the supply of petroleum products at a “discounted rate”. However, the state minister did not give any indication of the price.

“Russia has confirmed the availability of 100,000 barrels per day of crude oil supply but has not confirmed the rate yet which will be discussed in January,” a source in the petroleum ministry also said, adding that the visit was scheduled to take place on January 23, 2023.

He had said that detailed terms and conditions of the discounted oil commodities would be settled during the upcoming visit of the Russian energy minister to Islamabad by mid-January, but rates would be similar to the discount being given to other countries or even cheaper.

Before that visit, the two sides would crystallize proposals to a stage where an executive summary or an agreement could be signed and supplies start flowing, Malik had added.

Pakistan struggles to meet domestic gas supply needs as winter approaches while battling to contain a current account deficit swelled by energy payments, mostly for oil.

The country has been unable to procure Liquefied Natural Gas from the international market because spot prices remain out of its range and shipments under long-term deals remain insufficient to match rising demand.

Dr. Musadik Malik on Thursday again said the government held negotiations with the Russian government to purchase crude petroleum oil products. He added that Moscow had even expressed its desire to sell out its petroleum products to Pakistan at cheaper rates as compared to the international market.

Talking to a private news channel, the state minister said that coalition government was much concerned about the rising inflation, adding that efforts were being made to provide relief to the masses.

The state minister maintained that after receiving the petroleum crude oil products from Russia, the inflation would decrease.

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