ISLAMABAD: As a result of improvement in the value of rupee, the government on Monday announced reduction in the prices of all petroleum products with immediate effect.

The prices were reduced on the recommendations of the Oil and Gas Regulatory Authority (Ogra) following a meeting between Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar.

An official statement said that the prime minister had issued directives for passing on the benefits of appreciation in the value of rupee against US dollar to consumers.

The price of petrol was reduced by Rs1.72 (1.6 per cent) to Rs108.31 from Rs110.03 per litre and that of high speed diesel by Rs2.90 (2.5 per cent) to Rs113.85 from Rs116.75 per litre.

The price of kerosene, the poor people’s fuel which is mostly used in rural areas, was cut down by Rs5.61 (5.3 per cent) to Rs101.15 from 106.76 per litre.

Likewise, the price of light diesel oil was cut by Rs5.16 (5.1 per cent) to Rs95.06 from Rs100.22 per litre and that of high octane blending component by Rs4.66 (3.3 per cent) to Rs136.57 from Rs141.23 per litre.The reduction in prices was worked out on the basis of maximum petroleum levy permissible under an act of parliament.

Besides the Rs6 to Rs14 per litre petroleum levy, the government also charges 17 per cent general sales tax on the prices of all oil products.

An official statement said that the prime minister wrote a letter to all chief ministers after reduction in petroleum prices asking them to help reduce prices of other commodities.

“It is high time to pass on benefits of cheaper imports and cheaper cost of transportation to the citizens. People of Pakistan expect reduction in fares of urban and inter-city transport,” the prime minister said.

“I expect your personal interest and strong follow-up for immediate relief to the people of Pakistan,” he conveyed to the chief ministers.