Govt cuts petrol price by 12 paisas, diesel by 66 paisas for the next three days

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The government on Friday reduced the prices of petrol and high-speed diesel (HSD) by 12 paisas and 66 paisas per litre, respectively. Following the revision, petrol will retail at Rs336.03 per litre, while HSD will cost Rs392.38 per litre. The government continues to levy Rs110 per litre in taxes and duties on petrol and Rs96 per litre on diesel. The Petroleum Division’s notification said that the new prices would be applicable from August 1 to August 3. Meanwhile, in a bigger price shock, the Oil and Gas Regulatory Authority (Ogra) notified a record 32pc increase in the price of regasified liquefied natural gas (RLNG) for August, taking it to $25.83 per mmBtu for SNGPL and $25.09 per mmBtu for SSGCL. This will translate into a retail price of Rs7,204 per mmBtu. The price is based on five imported cargoes from the spot market, as no shipment could be secured from Qatar because of the US-Iran war. This is the single biggest jump in RLNG rates in its decade-long history. This comes on top of an about 15pc increase in the RLNG price fixed last month at $19.52 per mmBtu (Rs5,446 per mmBtu) for SNGPL and $18.63 per mmBtu for SSGCL. Compared with $10.45 (Rs2,916) per mmBtu in February this year, the RLNG price hike works out to around 148pc for August. This mainly results in a substantial increase in fuel costs for power generation. This can be seen from the fact that the fuel cost for RLNG-based power generation in May worked out to Rs31 per unit, compared with Rs13.72 per unit in April. The diesel price has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28. The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March. Earlier, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US. The government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel. The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends. The daily pricing decision was rejected by the All Pakistan Dealers Association, which said it would consider a protest plan this week. Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes. Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators. Petrol and HSD are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.