Pak Prime Minister slashes petrol prices by Rs 8.47, diesel by Rs 6.7

The price of petrol is now Rs 260.96 per litre in Pakistan, while its high-speed diesel stands at Rs 266.07 per litre. The correction came ahead of Pakistan's Independence Day celebrations

Pakistan Prime Minister Shehbaz Sharif approved a reduction in petrol and high-speed diesel (HSD) prices by Rs 8.47 and Rs 6.7 per litre, respectively, on Tuesday evening. This price cut is seen as a significant relief for the people, coming just before Pakistan's Independence Day celebrated on August 14.
 

The price of petrol is now Rs 260.96 per litre, while HSD stands at Rs 266.07 per litre.
 

PTV News, Pakistan’s 24-hour Urdu news channel called the reduced prices a “big gift to the people on Independence Day” in a post on X (formerly Twitter).

It was earlier anticipated that petrol and HSD prices could drop by up to Rs 9.2 per litre due to lower international crude prices, according to Pakistani newspaper Dawn. The decline in fuel prices is largely attributed to a decrease in international oil prices, with petrol prices falling to $84 per barrel and HSD to $91 per barrel over the last fortnight.
 

The government has been charging about Rs 78 per litre in taxes on petrol and HSD, including a Rs 60 per litre petroleum development levy and approximately Rs 18 per litre in customs duties.

This reduction follows a series of price adjustments, including a Rs 6.17 cut for petrol and Rs 10.86 for HSD in the last fortnightly review on July 31. Between May and June this year, fuel prices had decreased by Rs 35 and Rs 22 per litre for petrol and HSD, respectively.

The government has increased the maximum petroleum levy to Rs 70 per litre, aiming to collect Rs 1.28 trillion in the current financial year, which is significantly higher than the previous year’s target.

The latest reduction in petrol and diesel prices is being hailed as a timely relief for Pakistani citizens. However, the broader economic challenges, including fluctuating international oil prices and domestic fiscal pressures, continue to influence the pricing of essential commodities like fuel.