Islamabad - Following the global downward trend in oil prices, the caretaker government on Tuesday passed on partial relief to the consumers by slashing oil prices up to Rs8.46 per litre, which would be effective from today.

A senior official of petroleum ministry said that Ogra had moved a summary to petroleum and finance ministries, proposing a cut of Rs7.37 per litre in price of petrol, Rs5.15 in kerosene oil, Rs6.50 in high speed diesel (HSD), Rs8.46 in high octane blended component (HOBC) and a reduction of Rs4.91 per litre in the price of light diesel oil (LDO) was recommended. However, federal government facing cash starvation did not pass on full relief to the consumer by cutting oil prices in line with reduction in global oil prices.

Sources in the Finance Ministry said that the ministry had convinced Prime Minister Mir Hazaar Khan Khoso to absorb some impact in petroleum levy to collect revenue as it was facing financial crunch. The premier has approved Rs65 billion subsidy for the power sector out of which Rs30 billion has already been released to arrange fuel for power plants.

According to new prices of petroleum products (POL), the price of petrol has gone down to Rs97.59 from Rs102.30 per litre after a cut of Rs4.71 per litre. Similarly, a decrease of Rs8.46/litre in the price of high-octane blended component has been given, resultantly per litre price of HOBC has gone down to Rs123.57 from Rs132.03.

The price of high-speed diesel (HSD), used mainly in transport vehicles and agriculture, has come down by Rs2.53 per litre to Rs106.06 per litre from Rs 108.59 per litre.

Kerosene oil, used as fuel in remote areas where liquefied petroleum gas (LPG) is not available, has seen a price reduction of Rs4.09 per litre. After the reduction, kerosene oil will be sold at Rs94.17. The price of light diesel oil, used for industrial purposes, has also fallen by Rs4.22 per litre to Rs89.06. Similarly, the price of jet fuels JP-1 and JP-8 has come down by Rs 5.21per litre to Rs83.44 and Rs83.11 per litre.