The Government of Pakistan reduced petrol prices by Rs2.07 per litre and high-speed diesel (HSD) by Rs3.4 per litre on Monday, as per the finance ministry’s announcement during the fortnightly price review.
Following the price cut, petrol now costs Rs247.3 per litre, while HSD is priced at Rs246.29 per litre.
Additionally, the price of light diesel has been lowered by Rs1.3 per litre, setting the new rate at Rs140.9 per litre. Kerosene oil saw a reduction of Rs3.57 per litre.
Despite the strict conditions imposed by the International Monetary Fund, the government made a notable cut in petroleum prices on September 15. This decision followed a significant drop in global crude oil prices, although a recent $2.50 per barrel increase has brought the price back up to $72 per barrel.
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In September, the government had previously lowered petrol prices by Rs10 per litre following a Rs7 per litre decrease in oil prices.
This latest adjustment reflects the government’s ongoing efforts to regulate the cost of essential goods for consumers. The new prices are set to be implemented immediately, offering some relief to the public amidst rising living expenses.
Pakistan’s fuel prices are determined using a pricing formula approved by the government.
In the fiscal year budget, the government raised the maximum petroleum levy from Rs60 to Rs70 per litre, aiming to collect Rs1.28 trillion. This target is nearly Rs150 billion higher than last year’s collection of Rs1.019 trillion and surpasses the budget target of Rs869 billion.
Currently, the government imposes a tax of about Rs78 per litre on petrol and high-speed diesel (HSD).
In addition, it applies roughly Rs8 per litre in customs duties on both petrol and HSD, whether they are locally produced or imported. Oil companies and their dealers also receive around Rs17 per litre in distribution and sale margins.
Since May, petroleum prices in Pakistan have dropped by Rs47.54 per litre, according to Petroleum Minister Musadik Malik on September 12.
“Pakistan buys fuel at international market prices, though we do receive some discount on the premium,” he stated during a session of the National Assembly.
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