Government Reduces Petrol Price by Rs4, Diesel by Rs2

The government has implemented a reduction in petroleum product prices, cutting petrol by Rs4 per litre and high-speed diesel (HSD) by Rs2 per litre. The new prices are effective immediately, as announced on Friday by the Petroleum Division.

Following the decrease, the price of petrol is set at Rs373.78 per litre, down from its previous price of Rs377.78. High-speed diesel (HSD) is now priced at Rs378.78 per litre, reduced from Rs380.78. The new prices will officially be effective from Saturday, June 13.

This latest adjustment represents the fifth consecutive weekly reduction in petrol prices, contributing to a cumulative decrease of Rs41 per litre over this period. Last week, petrol also saw a Rs4 reduction, while HSD prices remained unchanged.

Currently, the government levies approximately Rs100 per litre on HSD, encompassing customs duty, petroleum levy, climate support levy, and an inland freight equalisation margin. Petrol, meanwhile, is subject to around Rs125 per litre in taxes, including petroleum levy, customs duty, and climate levy. Kerosene has a petroleum levy of about Rs21 per litre, and light diesel oil has a levy of approximately Rs16 per litre.

Petrol and HSD are significant revenue generators, with monthly sales ranging from 700,000 to 800,000 tonnes. In contrast, kerosene sees a monthly demand of about 10,000 tonnes. Petrol is primarily utilized in private transport, small vehicles, rickshaws, and two-wheelers, directly impacting the budgets of the middle and lower-middle classes. HSD is mainly used in the heavy transport sector and for large generators.

The government has been revising petroleum prices on a weekly basis, every Friday night, following the pause in the US-Israeli war on Iran, which commenced on February 28. (Source: Dawn Pakistan)