On Monday, the Government of Pakistan announced a reduction in petrol prices by Rs2.07 per litre and high-speed diesel (HSD) by Rs3.40 per litre as part of its bi-weekly price review. The new prices now stand at Rs247.30 for petrol and Rs246.29 for HSD.
Additionally, the price of light diesel has decreased by Rs1.30 per litre, setting the new rate at Rs140.90. Kerosene oil has also seen a reduction of Rs3.57 per litre.
This price cut follows the government’s earlier announcement of a significant reduction in petroleum prices on September 15, despite the stringent conditions imposed by the International Monetary Fund (IMF). The decrease is largely attributed to a drop in global crude oil prices, although there has been a recent uptick of $2.50 per barrel, bringing the price to $72 per barrel.
Earlier in September, the government had already lowered petrol prices by Rs10 per litre due to a decrease in oil prices. These adjustments aim to alleviate the financial burden on consumers amid rising living costs. The new rates are effective immediately.
Petroleum pricing in Pakistan follows a government-approved formula. In its fiscal budget, the government raised the maximum petroleum levy from Rs60 to Rs70 per litre, targeting a revenue of Rs1.28 trillion, surpassing last year’s collection of Rs1.019 trillion.
Currently, the government imposes about Rs78 per litre in taxes on petrol and HSD, along with around Rs8 in customs duties. Oil companies and dealers also benefit from approximately Rs17 per litre in distribution and sale margins. Petroleum Minister Musadik Malik noted that since May, petrol prices have dropped by Rs47.54 per litre.
