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28% cut in int’l oil rates: Govt needs to slash POL prices by 20%

28% cut in int’l oil rates: Govt needs to slash POL prices by 20%

ISLAMABAD: After a sharp decline of almost 28% in world Brent crude oil, trading from $114 in mid-June to $78 per barrel nowadays, it is expected that Pakistani government would provide further relief to the countrymen in shape of hefty cut of Rs 10 per litre in petrol prices.

Standing Committee on Finance in its recent meeting has asked the CCP to play its active role in slashing of POL prices by at least Rs 20/lite.

Customs Today also demanded of the government in its report published on November 17 that the government should at least decrease petrol price by Rs 14/litre till November end and then same Rs 14/litre in December end.

Earlier this month, the government slashed fuel prices by up to Rs09.43 per litre.

Commenting on the global trend, government officials said that domestic oil prices were likely to come down by Rs10 per litre for the month of December.

However, they said, the final calculation is to be made by the Oil and Gas Regulatory Authority (Ogra) on Friday (today).

Following the expected cuts next month, the price of High Speed Diesel (HSD), which is widely used in heavy transport vehicles and the agriculture sector, is likely to come down by Rs8 per litre.

Similarly, the price of petrol could witness a cut of Rs10 per litre against its current price of Rs94.19 per litre. Kerosene oil, which is used as kitchen fuel in remote areas of the country, may record a decrease of Rs5 per litre. Its current price is Rs87.52 per litre.

Likewise, consumers of High Octane Blending Component (HOBC), used mainly in luxury vehicles, are likely to enjoy a reduction of Rs10 per litre against the current price of Rs116.45 per litre.

The 28 per cent drop in the value of Brent crude, triggered by a sharp rise in US shale oil output, has provided an unparalleled opportunity for governments across the globe to slash rising fuel prices.