ISLAMABAD: The government announced on Friday a reduction of Rs1.97 per litre in both petrol and diesel prices, effective immediately for the week ending July 10, as part of the effort to reflect lower global price trends observed over the past week.
Consequently, the ex‑depot price for high‑speed diesel (HSD) will be Rs309.50 per litre for the upcoming week, down from the current Rs311.47, representing a Rs1.97 decrease.
Diesel prices have fallen from a peak of Rs520.35 per litre recorded on April 3. After reaching Rs281 per litre following the US‑Iran conflict on February 28, HSD remains the most inflationary fuel due to its extensive use in freight transport.
The ex‑depot price for petrol is set at Rs297.53 per litre for the next week, compared with the current Rs299.50, reflecting a Rs1.97 decline. Petrol had previously peaked at Rs458.41 per litre after climbing from Rs266 in the first week of March.
The petrol price has undergone successive downward revisions, with a cumulative reduction of about Rs109 per litre.
The government slightly increased the petroleum levy on both products; otherwise, petrol and diesel prices would have dropped by about Rs11 and Rs4 per litre, respectively.
Under IMF conditions, the government doubled the climate support levy to Rs5 per litre with effect from July 1, while correspondingly reducing the petroleum levy. As a result, the petroleum levy on diesel currently stands at about Rs80 per litre.
The petroleum levy on petrol now stands at about Rs70 per litre, in addition to the Rs5 climate support levy.
The government is currently charging about Rs101 per litre on high-speed diesel (HSD) in the form of Rs16 per litre customs duty, in addition to the petroleum levy and climate support levy, as well as the inland freight equalisation margin.
Meanwhile, the total tax on petrol amounts to Rs95 per litre, including Rs20 per litre customs duty in addition to the petroleum levy and climate levy.
The government is also charging about Rs21 per litre as petroleum levy on kerosene and about Rs16 per litre on light diesel oil.
Petrol and high-speed diesel (HSD) are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.
