Govt Announces Rs2.63 Cut In Diesel, Re0.84 Reduction In Petrol Prices

PAKISTAN: The federal government has reduced the ex-depot prices of high-speed diesel (HSD) by Rs2.63 to Rs412.12 per litre, and motor spirit (petrol) by Re0.84 to Rs389.28 per litre.

Following the revision, petrol will retail at Rs389.28 per litre while HSD will cost Rs412.12 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division’s notification, the new prices will be applicable for Sept 25 (Friday).

The price of HSD has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.

Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.

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.