Inflation-hit masses await respite on fuel front
Business
The petroleum prices were slashed earlier this month too
LAHORE (Web Desk) – With the cheaper Russian oil expected to reach Pakistan in the first week of next month, the coalition government is expected to further slash the prices of petroleum products with effect from June 1, providing another relief to the poverty-stricken masses.
The government is expected to announce the move on May 31, as the prices are revised fortnightly – on 15th and the last day of each month. The expected reduction will follow a decline in the ex-refinery prices of petroleum products.
Experts say the petrol price will be slashed by Rs10 per litre and that of high speed diesel by Rs5 as the ex-refinery rates of petroleum products are witnessing a downward trend – Rs10 to Rs12 for petrol and Rs5 to 6 for diesel. However, the new prices would be set by adjusting the exchange rate difference.
The expected decision will be a great relief for the inflation-hit masses who are experiencing a record price hike for essential commodities, especially food items. And this food inflation is higher for the rural population when compared with the urban.
Earlier this month, the government had reduced the price of high-speed diesel by Rs30 and of petrol by Rs12 with the current rate recorded at and Rs258 and Rs270 respectively. The reduction in the case of kerosene was Rs12 and light diesel oil was Rs12.
Meanwhile, the first oil tanker carrying 100,000 tonnes of crude oil from Russia has reached Oman last week on May 27, from where it will be transported to Pakistan in small ships. The reason behind this move is that Pakistani ports do not have the capacity to accommodate vessels carrying over 50,000 tonnes of goods.
Read more: Pakistan buys Russian oil but sees diversified future
Although there are different estimates, it is clear that the import of Russian oil will result in a considerable reduction in POL prices with some circles even suggesting up Rs100 cut in petrol rate.
