Government Announces Reduction in Petrol and Diesel Prices

The federal government has announced a reduction in petrol and diesel prices for the next fortnight, offering relief to consumers amid fluctuating global oil markets.

Latest Petrol and Diesel Prices in Pakistan

According to an official notification, the revised fuel prices are as follows:

• Petrol: Reduced by Re 1 per litre, now priced at Rs. 256.13 per litre.
• High-Speed Diesel (HSD): Decreased by Rs. 4 per litre, now available at Rs. 263.95 per litre.
• Light Diesel: Dropped by Rs. 5.25 per litre, bringing the new rate to Rs. 155.81 per litre.
• Kerosene Oil: Lowered by Rs. 3.20 per litre, now priced at Rs. 171.65 per litre.

This marks the first fuel price reduction of 2024, following three consecutive fortnightly price hikes.

Impact of Global Oil Market Trends

Fuel price adjustments in Pakistan are influenced by international oil market fluctuations and economic conditions. Recently, global oil prices declined due to speculation about a peace deal between Russia and Ukraine, which could ease supply chain disruptions and sanctions on Moscow.

• Brent Crude: Settled at $74.74 per barrel, down by 0.37%.
• West Texas Intermediate (WTI): Dropped to $70.74 per barrel, marking a 0.77% decline.

Petroleum Levy and Government Revenue

Despite the price cuts, the government continues to collect significant revenue from the petroleum levy. According to reports, a staggering Rs. 808 billion was amassed during the first nine months of 2024 from petrol and high-speed diesel.

The breakdown of collections per quarter:

• January – March: Rs. 246 billion
• April – June: Rs. 299 billion
• July – September: Rs. 261 billion

Currently, the government imposes a petroleum levy of Rs. 60 per litre on both petrol and diesel, contributing substantially to federal revenue. This amount is separate from the Federal Board of Revenue (FBR) tax collections, which are shared with provinces under the National Finance Commission (NFC) Award.