Many Pakistanis felt joy on Friday night upon hearing news of a major drop in petrol prices, but their happiness was short-lived. By Saturday morning, it became apparent that the reduction was not as substantial as initially reported by the media.
The source of the confusion was a statement from the Prime Minister’s Office (PMO) announcing major cuts in the prices of petroleum products. According to this announcement, petrol prices would decrease by Rs15.4 per litre and diesel by Rs7.9 per litre. However, the PMO’s statement led to delays, and the official notification did not arrive until midnight.
According to the finalized notification from the Ministry of Finance, effective June 1, the price of petrol was reduced by Rs4.74 per litre to Rs268.36, down from Rs273.10. Similarly, the price of high-speed diesel was cut by Rs3.86 per litre to Rs270.22, down from Rs274.08.
The Finance Ministry noted that these adjustments were part of the third consecutive fortnightly review, responding to the falling global oil prices. The Oil & Gas Regulatory Authority (OGRA) calculated the new consumer prices based on these international market trends.
Further confusion arose when the PMO later acknowledged an error in its initial announcement, admitting that the figures released were those from the previous fortnight. During the last review on May 15, the federal government substantially reduced petrol prices by Rs15.39 per litre and diesel by Rs7.88 per litre.
In Pakistan, the prices of petroleum products are revised every 15 days, aligning them with global oil price fluctuations and the rupee’s exchange rate against the dollar. Notably, about 85% of Pakistan’s oil requirements are met through imports, amplifying the impact of global market changes on local fuel prices.
