Govt slashes petrol, diesel prices by Rs1.97

The Pakistani government has announced a reduction in the prices of both petrol and high-speed diesel (HSD) by Rs1.97 per liter, effective immediately for the week concluding July 10. This adjustment aims to pass on some of the benefit from declining global oil prices over the past week.

The new ex-depot price for HSD is set at Rs309.50 per liter, down from Rs311.47. This follows a significant peak of Rs520.35 in early April, with prices having risen sharply after a conflict in February. HSD is considered a key driver of inflation due to its extensive use in transportation.

Similarly, the ex-depot price of petrol is now Rs297.53 per liter, a decrease of Rs1.97 from Rs299.50. Petrol prices had previously peaked at Rs458.41 in early April. While these reductions are in place, the government has slightly increased petroleum levies on both fuels, limiting the extent of the price drop. Under International Monetary Fund (IMF) conditions, the climate support levy was doubled to Rs5 per liter from July 1, while the petroleum levy was correspondingly reduced. Consequently, the petroleum levy on diesel stands at approximately Rs80 per liter, and on petrol at about Rs70 per liter, in addition to the climate levy and other duties.