The Oil and Gas Regulatory Authority (OGRA) has proposed a reduction in the prices of petroleum products, with the price of petrol dropping by up to Rs10 per litre.
The price of petrol could be reduced by Rs7 to Rs10 per litre, while the price of diesel is proposed to be reduced by Rs8 per litre.
OGRA has sent a summary of the proposed price reduction to the government. The finance minister will consult with the prime minister on the recommendations, and the final decision on the prices of petroleum products will be taken after that. The new prices will be applied after midnight on May 15.
The proposed price reduction comes as the global price of oil has fallen sharply in recent weeks. Brent crude oil, the international benchmark, is currently trading at around $100 per barrel, down from a high of $123 per barrel in March.
The fall in oil prices is a welcome development for Pakistan, which is a major importer of oil. A lower oil price will help to reduce the country’s import bill and could boost economic growth.
However, it is important to note that the price of oil is volatile and could rise again in the future. The government will need to be prepared to adjust the prices of petroleum products if the global oil price rises.
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