The government on Friday reduced the price of petroleum by Rs2 per litre, negating the proposed hike by the Oil and Gas Regulatory Authority.
Finance Minister Asad Umar, addressing a press conference here, announced a decrease of Rs2 per litre in petrol and diesel prices.
Price of kerosene oil has been cut by Rs3 per litre, whereas light diesel oil price has been slashed by Rs5 per litre, he said.
OGRA on Thursday had sought an increase of up to Rs10 in the prices of petroleum products. In a summary forwarded to the petroleum division, the authority had recommended an increase of Rs6.21 per litre in petrol prices, Rs2 per litre in diesel prices, Rs9.91 in kerosene oil prices and Rs7.79 in light diesel prices.
“Global oil prices rose in October, however the government only increased the petroleum prices by half as much that month,” Umar pointed out. Petrol prices had been raised by Rs5 per litre in October.
In the global market, oil prices gained on Thursday after the US benchmark slid below $50 a barrel following reports Russia could join a production cut at next month´s OPEC meeting.
The gains in petroleum prices came on a mixed day for global stocks as traders worldwide weighed Federal Reserve comments that were widely seen as dovish on monetary policy.