Govt reduces petrol price by Rs4, keeps diesel price unchanged

The Pakistani government has announced a reduction in the price of petrol by Rs4 per liter, effective immediately for the week ending June 12. However, the price of high-speed diesel (HSD) will remain unchanged at Rs380.78 per liter.

Officials adjusted taxes and other levies to maintain the diesel price, which is considered high due to its extensive use in freight transportation. The ex-depot price of petrol has been lowered to Rs377.79 per liter from Rs381.78. This marks the fourth consecutive weekly decrease in petrol prices, accumulating to a total reduction of about Rs37 per liter.

The government levies significant taxes on HSD, including customs duty, petroleum levy, and climate support levy, amounting to approximately Rs100 per liter. For petrol, the total tax burden is around Rs125 per liter. Similar taxes are applied to other fuels like kerosene and light diesel oil.

Petrol and HSD are major revenue generators for the government, with monthly sales volumes ranging between 700,000 to 800,000 tonnes. This contrasts sharply with the much lower monthly demand for kerosene.