ISLAMABAD: The federal government has reduced the prices of petrol and high-speed diesel (HSD) by Re1 and Rs4, respectively, for the next two weeks.

With the reduction of Re1, the new price of petrol is Rs256.15 per litre, while the HSD price has been reduced by Rs4 to Rs263.95 per litre.

The prices of light-diesel oil (LDO) and super kerosene oil have been reduced to Rs155.81 and Rs171.65, respectively, after cuts of Rs5.25 and Rs3.20.

HSD is consumed mostly by large vehicles including trucks, tractors, buses and heavy generators. Kerosene is commonly used by households in remote areas where access to LPG cylinders is difficult. Currently army troops are one of the largest consumers of kerosene oil, as those stationed in remote areas use it for cooking and heating.

The oil prices in the local market are calculated considering current government taxes, the current pricing of Inland Freight Equalisation Margin and dollar exchange adjustment. The prices of petroleum products are adjusted in line with fluctuation in global oil prices.

The Oil and Gas Regulatory Authority had proposed a downward revision in the prices of petroleum products, following the recent drop in the international market.