Cut in oil prices.

Pakistani consumers should expect a hefty cut in fuel prices following a sharp decline in the value of Brent crude, which plunged to a new low on Thursday.
A decrease of up to Rs10 per litre is likely to come into effect next month, The Express Tribune has learnt. Earlier this month, the government slashed fuel prices by up to Rs14.68 per litre after crude prices dipped in the international market.
With a glut of crude oil coming out of the US shale reservoirs, crude prices, which dropped to $77.75 per barrel on Thursday, have provided enough breathing space for the government to reduce fuel prices in the country.
Commenting on the global trend, government officials said that domestic oil prices were likely to come down by Rs10 per litre for the month of December.
However, they said, the final calculation is to be made by the Oil and Gas Regulatory Authority (Ogra) on Friday (today).
Following the expected cuts next month, the price of High Speed Diesel (HSD), which is widely used in heavy transport vehicles and the agriculture sector, is likely to come down by Rs6 per litre. Currently, it is sold at Rs101.21 per litre.
Similarly, the price of petrol could witness a cut of Rs9 per litre against its current price of Rs94.19 per litre. Kerosene oil, which is used as kitchen fuel in remote areas of the country, may record a decrease of Rs4 per litre. Its current price is Rs87.52 per litre.
Likewise, consumers of High Octane Blending Component (HOBC), used mainly in luxury vehicles, are likely to enjoy a reduction of Rs10 per litre against the current price of Rs116.45 per litre.
The 30 per cent drop in the value of Brent crude, triggered by a sharp rise in US shale oil output, has provided an unparalleled opportunity for governments across the globe to slash rising fuel prices.


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