The federal government on Friday reduced the prices of petrol and high-speed diesel (HSD) by Rs1.97 per litre for the next week, according to a notification issued by the Ministry of Petroleum. Under the revised rates, the price of petrol has been fixed at Rs297.53 per litre, while HSD will now cost Rs309.50 per litre. The new prices came into effect at midnight and will remain applicable for the next week, the notification said.
Background of Price Decision
Last week, the government decided to keep petrol and diesel prices unchanged despite a continued decline in international oil prices. Following that decision, Petroleum Minister Ali Pervaiz Malik had rejected the impression that the government was favouring any particular sector and said the public was likely to receive "good news" in the coming days. The minister had said that the government was closely monitoring trends in the international oil market and urged the public to review international Platts prices for petrol and diesel, maintaining that pricing decisions were being made on a fair and transparent basis.
Changes in Levy Structure
It later emerged that the government had revised the levy structure on petroleum products at the start of the new fiscal year. According to a notification issued by the Ministry of Energy on July 1, the Climate Support Levy on petrol and HSD was increased by Rs2.50 per litre to Rs5 per litre. At the same time, the Petroleum Levy on petrol sold through retail outlets was reduced by Rs2.50 per litre to Rs64.14 per litre, while the levy on HSD was reduced by Rs2.50 per litre to Rs77.04 per litre.
Impact on Consumers
The reduction of Rs1.97 per litre provides some relief to consumers who have been facing high fuel costs. However, the net effect of levy adjustments means that the overall tax burden on petroleum products has been recalibrated. The government's decision to adjust levies reflects its strategy to balance revenue generation with consumer relief amid fluctuating international oil prices.
