The prices of petroleum products are expected to decrease substantially for the month of March, DAWN reported.
According to reports, the price of Dubai Crude — a medium sour crude oil extracted from Dubai — came down from $62 per barrel to $50 on Friday.
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Similarly, the benchmark International Brent price reduced from $60 a barrel to $51 a barrel.
As per existing tax rates, the Oil & Gas Regulatory Authority (OGRA) calculated about Rs15 per litre reduction in the prices of high-speed diesel (HSD) and petrol.
The authorities concerned have proposed different rates but Prime Minister’s Delivery Unit (PMDU) had proposed scaling down the price of HSD from Rs127 to Rs100 per litre.
The officials reportedly advised PM Imran Khan that reduction in HSD price would go a long way in bringing down the rate of inflation because it was the primary source of transportation and agriculture in the country.
Moreover, the price of diesel is lower than petrol in many countries because of its inflationary impact. A drastic reduction in pricing structures to comply with PM’s directives will be problematic and certainly not an easy task.