Pakistan slashes 50 percent off recent increase to fuel prices

Pakistan slashes 50 percent off recent increase to fuel prices

2011-03-05 05:54:30 GMT+7 (ICT)

ISLAMABAD, PAKISTAN (BNO NEWS) -- Pakistan's Oil and Gas Regulation Authority (OGRA) on Friday announced the slashing by 50 percent to the recent increase to all petroleum products (POL), Geo News television reported.

OGRA issued a notification on the reduction to POL prices after the government led by President Asif Ali Zardari decided to withdraw the rise in all petroleum products prices by 50 percent.

According to the notification, the price of petrol was reduced by 3.65 Pakistan Rupees ($0.042) per liter which now costs Rs 76.54 ($0.89); the price of High Speed Diesel was slashed by Rs 3.88 ($0.045) to Rs 82.21 ($0.96); Light Speed Diesel was trimmed by Rs 3.30 ($0.038) to Rs 69.97 ($0.81); HOBC was reduced by Rs 4.29 ($0.05) to Rs 90.96 ($1.06); and kerosene oil was slashed by Rs 3.50 ($0.04) to Rs 74.45 ($0.87).

The decision to reduce increment was made just four days after OGRA announced a 9.9 percent increase to all petroleum products. The increment was the first one registered in the last two months.

The Pakistani government kept the price of petroleum products unchanged due to the pressure from all political parties. Last New Year's Eve, POL products were increased by 9 percent in order to compete against the rising prices in the world market.

However, opposition parties demonstrated their disagreement to the increase and Muttahida Qaumi Movement (MQM), the second-largest member of the ruling coalition, joined the opposition the following day.

On January 7, Prime Minister Yusaf Raza Gilani announced the reversal of the increase after Members of the Parliament agreed to withdraw such increment due to the overwhelming pressure from opposition parts and Pakistani society. Afterwards, MQM rejoined the ruling coalition.

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