Fuel prices in Pakistan dropped for the eighth consecutive time on Thursday, with petrol falling by Rs3 and high-speed diesel by Rs4 per litre.
Government Levies Heavy Taxes on Petrol and Diesel
Following a notification issued by the Oil and Gas Regulatory Authority, petrol will retail at Rs332 per litre and high-speed diesel will cost Rs360 starting Friday, dawn.com reported. Despite these consecutive reductions, the government continues to levy heavy duties. The state collects Rs114 per litre in taxes on petrol and Rs100 per litre on diesel.
Under an arrangement announced on November 2, oil refineries are contributing to the petroleum levy for 30 days by absorbing a cumulative impact of Rs15 billion. According to the government, this mechanism allows a Rs14.71 reduction in the petrol price directly at the consumer end.
Fuel Prices Fluctuate Amid Middle East Conflict and Subsidy Schemes
The adjustments follow months of severe volatility stemming from the Middle East conflict and the US-Iran war, which broke out on February 28. High-speed diesel had climbed from a baseline of Rs281 per litre before reaching a peak of Rs520.35 on April 3. Petrol similarly surged from Rs266 in the first week of March to a peak of Rs458.41 on April 3.
To mitigate the public burden, the government rolled out the Prime Minister’s Fuel Relief Scheme nationwide on September 17. The targeted subsidy applies exclusively to owners of motorcycles, rickshaws, and vehicles with engines up to 800cc.
Alongside these measures, the administration reintroduced austerity protocols requiring markets to close by 9 PM and cutting official vehicle fuel allocations by 50 percent for three months. Petrol and high-speed diesel remain major revenue earners with monthly sales of approximately 700,000 to 800,000 tonnes.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
