The government decided to reduce the Petroleum, Oil and Lubricants (POL) products prices by up to Rs 2.32 per litre, which on April 1 was increased by up to Rs 8.94 per litre effective from April 4.
The reduction in the prices of POL products came after countrywide protest launched by the mainstream opposition political parties, traders, transporters and masses at large.
The Ministry of Finance has approved reduction of Rs 2.32 per litre in petrol price, Rs 1.16 per litre in diesel and Kerosene Oil price was cut by Rs 1.74 per litre.
According to a notification, Oil and Gas Regulatory Authority (Ogra) has notified the above mentioned prices while no change has been made in the price of HOBC and diesel.
Currently, different petroleum products are being sold at following rates: Petrol at Rs 105.68 per litre, High Speed Diesel at Rs 108.10 per litre, Light Speed Diesel at Rs 98.74 per litre, HOBC at Rs 135.81 per litre and Kerosene Oil at Rs 101.69 per litre.
After current reduction petrol would be sold at Rs 103.36 per litre, High Speed Diesel at Rs 107 and Kerosene Oil at Rs 99.95 per litre.
The government on Sunday (April 1) increased petrol price by Rs 8.02 per litre, HOBC by Rs 8.94 per litre, kerosene oil by Rs 5.29 per litre, Light Speed Diesel Oil by Rs 5.45 litre and High Speed diesel by 4.70 per litre.
According to an official of the Petroleum Ministry, the government is likely to reduce CNG prices by Rs 2.3 per kg which it increased by up to Rs 11.57 per kg.
The official said that the measures are being taken to discourage the use of CNG in vehicles, particularly private vehicles, keeping in view the acute energy crisis.
The prices of CNG in region-1, which consists of Khyber-Pakhtunkhwa, Balochistan and Potohar (Rawalpindi, Islamabad and Gujarkhan) was increased by Rs 11.58 per kg and in region-II which consists of entire Sindh province and parts of Punjab increased by Rs 9.93 per kg.
After the current increase in CNG price the commodity is being sold at Rs 88.70 per kg in Khyber-Pakhtunkhwa, Balochistan and Potohar (Rawalpindi, Islamabad and Gujarkhan) and Rs 80.98 per kg in Sindh and Punjab (excluding Potohar region).
The Oil and Gas Regulatory Authority (Ogra) in a summary moved to the federal government on March 29 proposed that oil prices be kept unchanged by adjusting the increase in Petroleum Levy.
The government has already deregulated prices of many petroleum products including motor spirit (petrol), HOBC, LDO, jet fuels JP-1, JP-4 and JP-8 from June last year.
This means refineries and oil marketing companies can announce ex-refinery and ex-depot prices on monthly basis keeping in view the import prices.
However, in a controlled mechanism, the government notifies prices after fixing inland freight equalisation margin and petroleum levy, which come under its domain.