Petrol Price Drops by Rs 8.47, Diesel by Rs 6.70 per Liter: Prime Minister’s Independence Day Gift
In a significant relief for the public, Prime Minister Shehbaz Sharif has announced a substantial reduction in the prices of petroleum products as a special gesture on the occasion of Independence Day. The new prices, effective from August 14, 2024, are set to bring much-needed relief to consumers across the country.
New Petrol and Diesel Prices
As per the official notification, the price of petrol has been slashed by Rs 8.47 per liter. This reduction brings the price down from Rs 269.43 per liter to Rs 260.96 per liter. Similarly, the price of diesel has been reduced by Rs 6.70 per liter, lowering it from Rs 272.77 per liter to Rs 266.07 per liter. These adjustments are expected to ease the financial burden on the general public, especially in the current economic climate.
Decline in Petroleum Product Sales
In contrast to the reduction in prices, the country has witnessed a noticeable decline in the sale of petroleum products. The first month of the current fiscal year recorded an 11% year-on-year drop in sales. According to data from the Oil Companies Advisory Council (OCAC) and industry reports, 1.20 million tons of petroleum products were sold in July 2024, compared to 1.35 million tons in the same month last year.
Month-on-Month Comparison
On a month-to-month basis, July also saw a 17% decrease in petroleum product sales compared to June. In June 2024, a total of 1.45 million tons of petroleum products were sold, but this figure dropped to 1.20 million tons in July.
Breakdown of Sales
The data highlights a significant decline in the sales of key petroleum products:
- Petrol: 0.59 million tons were sold in July 2024, reflecting a 10% decrease compared to 0.66 million tons in July 2023.
- High-Speed Diesel: Sales dropped by 6%, with 0.40 million tons sold in July 2024, down from 0.49 million tons in the same period last year.
- Furnace Oil: The most substantial decrease was recorded in furnace oil sales, which plummeted by 46%, with 0.08 million tons sold in July 2024, compared to 0.14 million tons in July 2023.
The reduction in petrol and diesel prices is a welcome move by the government, especially at a time when the nation is celebrating its Independence Day. However, the declining trend in petroleum product sales indicates underlying challenges in the economy that may require further attention and strategic measures.
These developments will likely have a mixed impact on various sectors, and it remains to be seen how the market adjusts to the new pricing dynamics.
