Pakistan Reduces Petrol and Diesel Prices Amid Global Fluctuations
Islamabad– In a move aimed at easing the burden on consumers, the Government of Pakistan announced a reduction in fuel prices on Monday. Petrol will now cost Rs247.3 per litre, down by Rs2.07, while high-speed diesel has been decreased by Rs3.40 to Rs246.29. Additionally, the price of light diesel has dropped by Rs1.30, bringing it to Rs140.9, and kerosene oil is now priced at Rs3.57 less per litre.
This adjustment comes as part of the government’s fortnightly price revision, which reflects its ongoing efforts to manage essential commodity costs amid rising living expenses. Notably, this reduction follows a significant drop in global crude oil prices, despite a recent uptick of $2.50 per barrel, which pushed prices back up to $72 per barrel.
In September, the government had already cut petrol prices by Rs10 per litre, attributed to a Rs7 drop in oil prices. The new rates are effective immediately, offering some relief to the public.
Pakistan’s fuel pricing follows a government-approved formula. In the latest budget, the maximum petroleum levy was increased from Rs60 to Rs70 per litre, with an ambitious revenue target of Rs1.28 trillion—almost Rs150 billion higher than last year’s collection. Currently, around Rs78 per litre is imposed as tax on petrol and diesel, along with customs duties of approximately Rs8 per litre, regardless of local production or imports. Distribution and sale margins for oil companies and dealers add about Rs17 per litre.
Petroleum Minister Musadik Malik highlighted that since May, petrol prices have decreased by Rs47.54 per litre. “Pakistan purchases fuel at international market rates, but we benefit from some discounts,” he noted during a National Assembly session.
How do you feel about these changes? Will this provide the relief that many consumers have been looking for?
