Pakistan government slashes petrol and diesel prices

The Pakistani government announced a reduction in fuel prices on Friday, lowering the cost of petrol by Rs4 per litre and high-speed diesel (HSD) by Rs2 per litre. These new prices are effective immediately.

Following the decrease, petrol is now priced at Rs373.78 per litre, down from Rs377.78. High-speed diesel is now Rs378.78 per litre, reduced from Rs380.78. This move represents the fifth consecutive weekly reduction in petrol prices, accumulating to a total decrease of Rs41 per litre over the past several weeks.

The government levies significant taxes on fuel sales. Currently, approximately Rs100 per litre is charged on HSD through customs duty, petroleum levy, and climate support levy, in addition to inland freight equalization margins. For petrol, the total tax burden stands at Rs125 per litre, encompassing petroleum levy, customs duty, and climate levy.

These price revisions occur weekly, typically on Friday nights. The adjustments have been influenced by global market dynamics, including the now-paused conflict between the US and Iran, which began on February 28. Petrol is a key commodity for middle and lower-middle-class households, primarily used in private transport, while HSD is essential for the heavy transport sector and large generators.