ISLAMABAD - Following decrease in the dollar rate, the government has announced to reduce prices of petroleum products with effect from today (Tuesday).

According to a government notification, the price of petrol has been reduced by Rs 1.72 per litre and its new price will be Rs 108.31.

The prices of high octane, light diesel and high speed diesel have been reduced by Rs 4.66, Rs 5.16 and Rs Rs 2.90 per litre, respectively. The new prices are effective from April 1, 2014.

According to officials, Finance Minister Ishaq Dar at a meeting on Monday apprised the PM that dollar exchange rate against Pak rupee was hovering around Rs 98, imports would receive a positive impetus. Keeping in view these factors, the prime minister directed him to pass on the benefits of currency stabilisation to the common man, the officials said.

Last year dollar touched Rs 110. It gradually recovered this year. Experts believe dollar inflow in the country is the reason behind recovery of rupee against dollar. Pakistan has reportedly received $750 million from Pakistan Development Fund, which helped ease pressure on rupee.