By Staff Reporter
ISLAMABAD: The government cut fuel prices late Wednesday, offering relief to consumers grappling with high living costs in a move that could temporarily ease inflationary pressures.
The price reductions, effective immediately, come as global oil prices stabilise and the government seeks to balance fiscal demands with public affordability.
According to a Finance Division notification, the price of petrol, widely used in motorcycles, rickshaws, and private vehicles, was reduced by Rs5.66 per liter to Rs263.02 from Rs268.68. High-speed diesel (HSD), critical for heavy transport, agricultural machinery, and trains, saw a more modest cut of Rs1.39 per liter, bringing its price to Rs275.41 from Rs276.81.
The government also lowered prices for superior kerosene oil (SKO) by Rs3.26 to Rs181.71 per liter and light diesel oil (LDO) by Rs2.74 to Rs162.76 per liter. The adjustments, set to remain in effect for the next two weeks, were made on the recommendations of the Oil and Gas Regulatory Authority (Ogra) and relevant ministries, the notification said.
The price cuts could provide a reprieve for the middle- and lower-income households, where petrol is a staple for daily commuting. HSD, a key driver of costs in logistics and agriculture, has a broader impact on the prices of food and essential goods, making its price highly inflationary.
Pakistan, heavily reliant on imported oil, has faced intense pressure to manage fuel costs while meeting revenue targets under a $7 billion International Monetary Fund program. The government has maintained a zero general sales tax (GST) on all petroleum products but levies a petroleum development levy (PDL) and a climate support levy (CSL). Currently, petrol and high-octane products carry a combined levy of Rs80.52 per liter, including a Rs2.50 CSL, while diesel faces a Rs79.50 levy per liter. Customs duties of approximately Rs17-18 per liter apply to both petrol and HSD, regardless of whether they are locally produced or imported. Oil companies and dealers also collect distribution and sales margins of about Rs17 per liter, adding to the final pump price.
The government’s fortnightly fuel price adjustments, based on global crude oil trends and exchange rate fluctuations, aim to align domestic prices with international markets while cushioning consumers where possible. The latest cuts follow a period of relative stability in global oil prices, with Brent crude hovering around $62 per barrel in recent weeks. Pakistan’s energy sector, which accounts for a significant portion of its import bill, remains a critical factor in the country’s trade deficit and fiscal planning
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