February 28, 2022 (MLN): The government on Monday announced a cut in petrol prices despite the limited fiscal space and a steep rise in the global oil market amid the Ukraine-Russia war.
According to the notice issued by the finance division, Petrol and diesel prices have been slashed by Rs10 to Rs149.86 and Rs144.15 per litre respectively.
The price of Kerosine oil has been cut Rs1 to Rs125.56 per litre, while the price of Light diesel oil has been reduced to Rs118.31 per litre, down by Rs5.66.
In the fortnightly review, due on 28th February, OGRA has recommended R$10/litre increase in the petroleum products prices. The Prime Minister has not only rejected the increase but also announced to decrease the prices of petroleum products by Rupees 10/litre in his address to the nation in order to provide maximum relief to the consumers, despite the limited fiscal space, the notice said.
It further stated that the global petroleum products' prices are tracking the Ukraine- Russia war and resultantly surged to $100/bbl. The unprecedented increase is very risky for domestic fuel prices and inflation. The situation leaves very few options for the Government.
Prior to today's review, the Government has left more than Rupees 70 billion per month to keep the prices lower and provide relief to the masses.
The new prices of petroleum products will take effect from 1 March 2022.
