Islamabad: The federal government has announced a significant reduction in petroleum prices, bringing relief to consumers across Pakistan. According to an official notification issued by the Finance Division late Wednesday, the new rates will be effective for the next 15 days.

Revised Fuel Prices in Pakistan

The price of petrol has been slashed by Rs5.66 per litre, bringing it down from Rs268.68 to Rs263.02 per litre. Similarly, the cost of high-speed diesel (HSD) has been cut by Rs1.39, lowering the new price to Rs275.41 per litre from the earlier Rs276.81.

In addition to petrol and diesel, other petroleum products have also seen rate adjustments:

Superior kerosene oil (SKO): Reduced by Rs3.26, now priced at Rs181.71 per litre (previously Rs184.97).

Light diesel oil (LDO): Down by Rs2.74, now at Rs162.76 per litre (previously Rs165.50).

The notification stated that the decision was made based on recommendations from the Oil and Gas Regulatory Authority (OGRA) and related ministries, in line with global market trends.

Impact on Economy and Households

Petrol is widely used in motorcycles, rickshaws, and private vehicles — directly affecting middle- and lower-income households. On the other hand, high-speed diesel powers heavy transportation, agricultural equipment, and railways, making it a crucial factor in determining overall inflation and food prices.

Breakdown of Petroleum Taxes and Levies

Although General Sales Tax (GST) remains at zero percent for all petroleum products, the government continues to collect several levies:

Petrol levy and climate support levy: Around Rs80.52 per litre on petrol and Rs79.50 per litre on diesel.

Climate Support Levy (CSL): Includes Rs2.50 per litre.

Customs duty: Approximately Rs17–18 per litre on both petrol and diesel, regardless of import or local production.

Distribution and dealer margins: Around Rs17 per litre are allocated to oil marketing companies and dealers.

Relief Amid Economic Pressure

The latest reduction in fuel prices is expected to provide some relief to consumers already struggling with inflation and high living costs. Economists note that stable or declining fuel rates can help ease transportation and commodity prices, benefitting both individuals and businesses.