The federal government has reduced the prices of petrol and High-Speed Diesel (HSD) by Rs1.97 per litre, with immediate effect for the week ending July 10, passing on part of the benefit of lower international oil prices.
Under the revised rates, the ex-depot price of petrol has been fixed at Rs297.53 per litre, down from Rs299.50, while high-speed diesel will now cost Rs309.50 per litre instead of Rs311.47.
Despite the reduction, consumers did not receive the full benefit of falling global oil prices as the government slightly increased the petroleum levy on both fuels. Without the adjustment, petrol prices would have fallen by around Rs11 per litre and diesel by about Rs4 per litre.
The changes took place after the government doubled the climate support levy to Rs5 per litre from July 1 under commitments made to the International Monetary Fund (IMF), while making corresponding adjustments to the petroleum levy.
At present, the government collects around Rs95 per litre in taxes and levies on petrol, including a Rs20 per litre customs duty, petroleum levy and climate support levy. The total government charge on high-speed diesel is approximately Rs101 per litre, comprising a Rs16 per litre customs duty alongside the petroleum levy, climate support levy and inland freight equalisation margin.
The petroleum levy currently stands at about Rs70 per litre on petrol and Rs80 per litre on diesel. The government also charges around Rs21 per litre as petroleum levy on kerosene and about Rs16 per litre on light diesel oil.
Diesel prices have declined significantly from their peak of Rs520.35 per litre recorded on April 3, while petrol has fallen from a high of Rs458.41 per litre reached the same day. Petrol prices have now been reduced by a cumulative Rs109 per litre through successive revisions.
Petrol and high-speed diesel remain the government’s largest petroleum revenue sources, with combined monthly sales of around 700,000 to 800,000 tonnes, far exceeding demand for kerosene.
