Caretakers keep petrol price unchanged for next fortnight

• Light diesel oil has also been cut by Rs4.52 per litre.
• Caretaker PM approves the new fuel prices.
• New prices will be effective from Thursday midnight.

ISLAMABAD: The caretaker federal government decided on Thursday to maintain the petrol price at Rs281.34 per litre for the next fortnight — till December 15.

However, the high-speed diesel (HSD) has been slashed by Rs7 per litre while kerosene oil reduced by Rs3.82 per litre. The light diesel oil has also been cut by Rs4.52 per litre.

Caretaker Prime Minister Anwaar-ul-Haq Kakar approved the new fuel prices which will be effective from Thursday midnight and remain in place till December 15.

The country fixes fuel prices on a fortnightly basis after evaluating fluctuating international energy market costs and the rupee-dollar parity to transfer the impact on domestic consumers.

On November 15, the interim government reduced the petrol and diesel prices by Rs2.04 and Rs6.47 per litre, respectively.

The government is charging zero general sales tax (GST) on all petroleum products while the rate of petroleum levy (PL) on petrol and diesel is Rs60 per litre.

Diesel is widely used in the transport and agriculture sectors and the reduction in its price could bring inflationary impact down.

According to brokerage reports released on Wednesday, inflation is expected to surge in November, primarily due to a massive hike in gas prices,

The consumer price index (CPI), which measures changes in the prices of goods and services, is likely to rise to 28.6-29.6% year-on-year in November, up from 26.9% in October.

A report by brokerage Insight Securities predicts that the inflation rate will register a 2.1% month-on-month jump, defying earlier expectations of a gradual slowdown from September onwards.

Optimus Capital Management estimates that the CPI will increase by 2.9% month-on-month, primarily driven by an 11.6% jump in the housing index due to gas price revision and a 1.6% increase in the food index.