The caretaker federal government has slashed the price of petrol by Rs14 per litre and high-speed diesel (HSD) by Rs13.50 per litre on Friday, providing much-needed relief to the people who have borne the brunt of a challenging economic crisis since mid-2022.

The reduction came after the price of crude oil fell in international markets and the Pakistani rupee appreciated against the US dollar.

According to a notification issued by the Finance Division, the price of kerosene oil has been reduced by Rs10.14 whereas the tariffs of light-diesel oil (LDO) have been cut by Rs11.29 per litre.

It stated that the prices of petroleum products were reduced following a recommendation by the Oil and Gas Regulatory Authority (Ogra). After the reduction, the price of petrol has been reduced from Rs281.34 to Rs267.34 per litre.

Read more: Over Rs13 per litre cut in petrol price likely

Petrol is predominantly used in motorbikes and cars as an alternative to compressed natural gas (CNG), especially in the Punjab province where indigenous gas is not available at CNG retail outlets.

Similarly, the tariff of HSD has been slashed from Rs289.71 to Rs276.21 per litre. HSD is primarily used in the agriculture and transport sectors, and this price reduction may help alleviate inflation to some extent.

The new price of kerosene oil, whose consumption increases significantly during winters in remote areas, had become Rs191.02 per litre whereas LDO was available at Rs164.64 per litre.

Kerosene oil is commonly used in stoves, particularly in remote areas, including the northern regions of the country. The Pakistan Army is also a major consumer of kerosene oil.