Relief may be on the way for fuel consumers in Pakistan as the government is reviewing new recommendations to revise petroleum prices from the start of September.
According to official sources, the Oil and Gas Regulatory Authority (OGRA) has completed its initial working and forwarded the proposal to the Petroleum Division. The final decision will rest with the Prime Minister who is expected to give his approval on August 31.
According to the latest notification issued by the Ministry of Finance, petrol prices will remain unchanged at Rs. 264.61 per litre, while the price of high-speed diesel has been reduced by Rs. 12.84, bringing it down to Rs. 272.99 per litre.The notification also highlighted a cut in kerosene oil prices by Rs. 7.19 per litre, lowering it to Rs. 178.87. Light diesel oil saw a reduction of Rs. 8.20 per litre, now priced at Rs. 162.37.
The notification also highlighted a cut in kerosene oil prices by Rs. 7.19 per litre lowering it to Rs. 178.87. Light diesel oil saw a reduction of Rs. 8.20 per litre, now priced at Rs. 162.37.
However, despite these price adjustments, the government increased the petroleum levy, limiting the relief passed on to consumers. The levy on petrol and diesel rose by Rs. 2.50 per litre, with the levy on diesel climbing from Rs. 74.51 to Rs.77.01 per litre. Similarly, the levy on petrol increased from Rs.75.52 to Rs. 78.02 per litre
This review comes only weeks after the government announced the mid-August prices. At that time, petrol rates were kept unchanged, but diesel, kerosene and light diesel were given significant cuts.
However, despite those reductions, the increase in petroleum levy limited the benefit for end consumers. Levies on petrol and diesel were raised by Rs. 2.50 per litre while freight and dealer margins also added to the overall cost.
The freight margin on diesel has also been raised by Rs. 0.20 per litre, now standing at Rs. 6.24 per litre. Additionally, a climate support levy of Rs. 2.50 per litre has been imposed on both petrol and diesel.
Meanwhile, the dealer’s margin for petrol and diesel is fixed at Rs. 8.64 per litre, while the distributor’s margin is set at Rs. 7.87 per litre. The sales tax rate on both fuels remains at zero.
