ISLAMABAD: Pakistan slashed the prices of petroleum products by up to Rs14 per liter on Friday, a statement by the finance ministry said, a move that would likely ease inflationary pressure on the masses as global oil prices dip. 

The price of petrol was slashed by Rs14 per liter while that of high speed diesel was cut by Rs13.50 per liter, the notification by the ministry said. The new prices of petrol and diesel, following the reductions, are Rs267.34 per liter and Rs276.21 per liter respectively for the fortnight.

“Government of Pakistan has decided to revise the prices of Petroleum Products for the fortnight starting from 16. December, 2023, as recommended by Oil and Gas Regulatory Authority (OGRA),” the notification read, without mentioning a specific reason for slashing the prices.

The government also announced a reduction in the prices of kerosene oil, which was cut by Rs 10.14 per liter from Rs 201.16 per liter to Rs 191.02 per liter. Furthermore, the price of light diesel oil (LDO) were slashed by Rs 11.29 per liter from Rs 175.93/liter to Rs 164.64 per liter. 

Though the notification did not specifically state the reasons for the significant reductions, local media reports had predicted the move, attributing it to a significant decline in global oil prices. 

The development also takes place as the Pakistani currency made slight gains against the greenback this week, appreciating by 0.09 percent on Friday, 0.04 percent on Thursday and 0.06 percent on Wednesday. 

Battling rising inflation and dwindling foreign exchange reserves, Pakistan is trying to navigate a path to economic stability after agreeing on a $3 billion IMF loan in July.