On Sunday, the federal government announced a reduction in the prices of petroleum products, bringing the per liter price of petrol down by Rs. 1.71. The notification was issued on Sunday evening by the Ministry of Finance, announcing that the new prices will be effective from November 16, 2020.
With the reduction in prices, the new per liter price of petrol stands at Rs. 100.69. The price of high-speed diesel (HSD) has also been brought down by Rs. 1.79, bring the new price to Rs. 101.43. The prices of kerosene oil and light diesel oil (LDO), on the other hand, remained at Rs. 65.29 and Rs. 62.86 per liter respectively.
Reports began circulating last week that the appreciation of the local currency against the US dollar is likely to result in a reduction in the prices of petrol and diesel during the second half of the ongoing month.
A news agency also reported that as per the analysis done by the Oil and Gas Regulatory Authority (OGRA), the government can afford a per-liter price-cut of Rs. 3.40 and Rs. 2.5 for petrol and diesel.
The government is also in active pursuit of curbing illegal sales of petroleum products by shutting down any unauthorized petrol stations across the country. The government also requested the Cabinet Committee for Disposal of Legislative Cases (CCLC) to allow the suggested amendments to the Petroleum Act 1934.
Reportedly, the amendments focus on putting a stop to the illegal sale of petroleum products in the country, ensuring check and balance upon the avoidable fire incidents caused by petroleum cargo, assuring compliance with the international standards of production, and increasing the penalty amount up to Rs. 10 million in case of a fatal incident.