Petrol price unchanged at Rs 263.45 for next fortnight

• The Petroleum Directorate issues the notification.
• The new prices will remain in effect until December 31.
• The price of diesel is set at 265.65 per litre.
  

The federal government on Monday decided to keep petrol price unchanged at Rs 263.45 per liter for the next fortnight, following recommendations by the Oil and Gas Regulatory Authority (Ogra) and line ministries.

The price of high-speed diesel, meanwhile, has seen a significant drop by Rs 14 per liter with effect from December 16, according to a release issued by the Petroleum Department.

Diesel will now cost Rs 265.65 per liter for the next 15 days.

Ogra had earlier dismissed reports that fuel prices could be reduced by up to Rs 12 per liter from December 16, terming them “purely speculative” and unrelated to any formal pricing exercise by the regulator.

In a press statement issued on December 13, the authority said it calculates oil prices in accordance with federal government guidelines and only within the notified time frame.

Many media reports spoke of a reduction in domestic fuel prices, citing official sources.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers. Higher fuel prices have a significant impact on the budgets of members of the middle and lower middle classes, who mainly use gasoline for their transportation.

On the other hand, a significant part of the transport sector relies on high-speed diesel.

Its price is considered inflationary as it is mainly used in heavy goods vehicles, trucks, buses, trains and agricultural machinery such as tractors, tube wells and threshers.

The consumption of high-speed diesel is a major contributor to the increased prices of vegetables and other food items.