The government has applied a 1.03% cut down on petrol prices across the country. The cut will reduce the price from Rs 77.79 to Rs 76.76 per liter.

The petroleum minister had proposed sharper cuts in the prices of petrol, diesel and kerosene. However the proposal was rejected by the Finance Minister as oil is the major source of revenue for the government.

Prime Minister Nawaz Sharif suggested that petrol prices be cut down by 1.03% or 1.3% per liter, while the Oil and Gas Regulatory Authority (Ogra) had originally recommended a price decrease of Rs: 2.69 per liter, or 3%, to Rs: 75.10 per liter.

The reduction was recommended in petrol as it is consumed by the majority of the vehicles, therefore a large number of middle and lower middle class will benefit from it.