Notification Issued for Reduction in Petroleum Product Prices

Islamabad (Qudrat Daily) – OGRA has announced a reduction in the prices of petroleum products. According to the notification issued by the Petroleum Division, the price of petrol has been reduced by Rs 1.93 and the price of diesel by Rs 4.21 per litre. The new price of petrol has been fixed at Rs 390.12 and the price of high-speed diesel at Rs 414.75.

The new prices will take effect from 12 midnight tonight. The reduction in oil prices in Pakistan is due to oil prices in the global market falling to a two-week low, the main reason for which is being attributed to the prospects of improvement in oil supply from the Gulf and hopes of the Strait of Hormuz reopening. According to international media reports, the price of the November contract for Brent crude fell by $2.01, or 2 percent, to $98.33 per barrel, while the October delivery of US West Texas Intermediate fell by $2.50, or 2.61 percent, to $93.28 per barrel.

Iran’s indications of the possibility of reopening the Strait of Hormuz within the next seven days have reduced concerns regarding oil supply in the global market. According to experts, the possible increase in supply from the Gulf region has reduced concerns of an immediate shortage in the global market, as a result of which pressure on oil prices has increased. According to a further report, oil prices fell after improvement in negotiations between the US and Iran.

According to media reports, after negotiations between the US and Iran and improvement in crude oil supply, Brent fell by 4 percent to $99. WTI was seen trading at $89 per barrel, while the price of UAE’s Murban is at $108 per barrel. On the other hand, Iran has announced the restoration of the Pars gas field affected by US attacks in March. In this regard, Iran’s Deputy Oil Minister said that half the capacity of the gas field has been reactivated.