KARACHI, Oct 15: The Oil Companies Advisory Committee on Monday cut the prices of petroleum products by 5.51 per cent to 11.48pc for the Oct 16-31 fortnight.

In another development, Pakistan State Oil slashed the prices of light sulphur and high sulphur furnace oil by 4.53pc to 15.36pc.

The price of petrol (MS 87-RON) was slashed by 6.01pc to Rs30.51 per litre from Rs32.46, while a decline of 9.69pc was announced in the price of high speed diesel, now quoted at Rs17.33 per litre against Rs19.19.

High Octane Blending Component would now be available at Rs34.48 per litre as compared to Rs36.49, while the new price of kerosene oil was fixed at Rs16.27 per litre from Rs18.38.

The price of light diesel oil was reduced to Rs14.48 per litre from Rs16.23. The new price of JP-4 is Rs14.72 per litre, down from Rs16.62.

OCAC chairman Tariq Kirmani attributed the price fall to decline in finished products prices in the international markets during the current fortnight.

Also, he told a press conference on Monday, the rupee had appreciated against the dollar during the same period, thereby helping in further reducing the overall product prices.

However, the war risk surcharge on imports has a marginal negative impact on the overall prices. Mr Kirmani said the reaction of the Organization of Petroleum Exporting Countries to the declining prices was still uncertain though they had indicated that they might consider reducing crude oil output by around 700,000 barrels per day if weak prices persisted.

Mr Kirmani, who is also the managing director of PSO, said the selling price of PSO’s light sulphur fuel oil had been reduced to Rs12,682 per ton from Rs14,984, while the new price of high sulphur fuel oil had been fixed at Rs11,868 per ton as compared to Rs12,431.

He linked the price cut of fuel oil to the decrease in prices in the Arabian Gulf from where the product is being procured.