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Islamabad (Manand News) Petrol price reduced by Rs 10 and speed diesel by Rs 8 per liter. The federal government has reduced the price of petrol by Rs 10.28 and the price of high-speed diesel by Rs 8.57 per liter for the next fortnight.
In a late-night announcement, the Petroleum Division said that this change in prices has been made based on the fluctuations in prices in the global market and the recommendations of the Oil and Gas Regulatory Authority OGRA.
According to the announcement, the price of ex-depot petrol has been reduced from Rs 263.45 per liter to Rs 253.17 per liter. Petrol is mostly used in private transport, small vehicles, rickshaws and motorcycles and this has a direct impact on the budget of the middle and lower middle class.
On the other hand, the ex-depot price of high-speed diesel has been reduced from Rs 265.65 per liter to Rs 257.08 per liter for the current fortnight. High-speed diesel is used in most of the transport sector.
The price of high-speed diesel is considered an inflationary factor as it is used in heavy transport vehicles, trains and agricultural machinery such as trucks, buses, tractors, tube wells and threshers and is particularly responsible for the increase in the prices of vegetables and other food items.
Although the general sales tax on all petroleum products is zero, the government is collecting a petroleum levy of Rs 78 per liter on diesel and Rs 82 per liter on petrol and high-octane products, while an environmental support levy of Rs 2.50 per liter is also imposed.
In addition, the government is also collecting a customs duty of about Rs 16 to 17 per liter on petrol and high-speed diesel, whether they are locally produced or imported. Moreover, oil companies and their dealers are given a margin of about Rs 17 per liter on distribution and sales.
Petrol and high-speed diesel are major sources of government revenue, with average monthly sales of around 700,000 to 800,000 tonnes, while the monthly demand for kerosene is only 10,000 tonnes.
The government collected around Rs 1.161 trillion in petroleum levy alone in the fiscal year 2025 and this revenue is expected to increase by around 27% to Rs 1.470 trillion in the current fiscal year.