Petrol Price Reduced by Re1 for the Next Two Weeks
March 28, 2025
Petrol Price Reduced by Re1 for the Next Two Weeks
Islamabad – March 28, 2025: In a relief for consumers, the federal government has announced a reduction in petrol prices by Re1 per liter for the next two weeks. The revised fuel prices will be effective from midnight and remain in place until the next review on April 15, 2025.
The new prices were finalized following a routine review conducted by the Oil and Gas Regulatory Authority (OGRA), which assesses international crude oil trends and exchange rate fluctuations before recommending price adjustments.
New Fuel Prices
According to the notification issued by the Ministry of Finance, the new fuel prices are as follows:
- Petrol: Reduced by Re1 per liter
- High-Speed Diesel (HSD): No change
- Kerosene Oil: No change
- Light Diesel Oil (LDO): No change
The price of high-speed diesel, which is widely used in the transport and agriculture sectors, has been left unchanged due to its critical role in the economy.
Government's Justification
The government stated that the slight reduction in petrol prices was made possible due to stable global crude oil prices and a slight improvement in the Pakistani rupee’s value against the US dollar. However, authorities also cautioned that any sharp fluctuations in global oil markets could impact future pricing decisions.
“The decision to lower petrol prices reflects our commitment to providing relief to the masses, especially amid rising inflation,” a finance ministry spokesperson said.
Impact on Consumers
The price cut, though modest, comes as a welcome change for motorists, motorcyclists, and transporters who have been struggling with rising fuel costs over the past year.
“This is a small but positive step. Even a slight reduction in petrol prices helps ease our expenses,” said Rashid Ahmed, a ride-hailing driver in Karachi.
Similarly, motorcycle riders, who make up a significant portion of daily commuters, appreciated the reduction but urged the government to implement further cuts in the coming months.
“The government should bring petrol prices down by at least Rs5 to Rs10 to provide real relief,” said Salman Tariq, a resident of Lahore.
Global Oil Market Trends
The decision to reduce petrol prices in Pakistan aligns with global trends. In recent weeks, international crude oil prices have remained relatively stable, fluctuating between $75 and $80 per barrel. However, energy analysts warn that geopolitical tensions and supply chain disruptions could cause volatility in the coming months.
Pakistan, which imports a significant portion of its fuel needs, remains highly vulnerable to changes in global oil prices and currency exchange rates. The country’s foreign exchange reserves and trade balance also play a crucial role in determining domestic fuel costs.
Opposition's Criticism
While the government has projected the price cut as a positive move, opposition parties have criticized the decision, calling it insufficient in the face of rising inflation.
“Reducing petrol prices by just Re1 is a mere eyewash. The government should implement meaningful reductions to benefit the public,” said a senior leader of the opposition party.
What to Expect in the Next Review?
The next fuel price review is scheduled for April 15, 2025. Any future adjustments will depend on factors such as:
- Global crude oil prices
- Exchange rate fluctuations
- Taxation policies and levies
- Overall economic conditions
Economic experts suggest that if international oil prices remain stable and the rupee continues to strengthen, further reductions in fuel prices might be possible. However, any rise in global crude oil rates could push prices upward again.
Conclusion
The government's decision to lower petrol prices by Re1 per liter provides minor relief to consumers, though many believe a more significant reduction is necessary. As fuel prices impact the cost of transportation, goods, and services, any price changes have a direct effect on inflation and household budgets.
All eyes will now be on the next price review in mid-April to see if further relief is on the horizon for Pakistani consumers.
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