Prime Minister Shehbaz Sharif announced a significant reduction in fuel prices, cutting petrol by Rs6.17 per litre and high-speed diesel (HSD) by Rs10.86 per litre for the next two weeks. According to PTV, the new prices are Rs269.43 for petrol and Rs272.77 for HSD. Kerosene oil is now Rs177.39 after a Rs6.32 reduction, and light diesel oil is Rs160.53 following a Rs5.72 decrease.
These cuts surpass initial estimates, which predicted a decrease of Rs3 for petrol and Rs8.50 for HSD. The reductions are attributed to lower international market prices and decreased import premiums. Over the past fortnight, international petrol and HSD prices fell by about $2 and $3 per barrel, respectively. The average petrol price dropped to $87.5 per barrel, and HSD fell to $94 per barrel.
Despite these price cuts, the government has increased the maximum petroleum levy to Rs70 per litre to collect Rs1.28 trillion in the next fiscal year. Previously, petrol and HSD prices rose by Rs17.44 and Rs15.74 per litre in June and July. From May 1 to June 15, prices were reduced by about Rs35 and Rs22 per litre. Currently, the government charges around Rs78 per litre in taxes on both petrol and HSD, with GST at zero but a Rs60 per litre petroleum development levy impacting consumers.
