Govt Slashes Petrol Price by Rs7.54, Hikes Diesel

News Desk

Islamabad: The federal government on Thursday night announced a significant reduction in the price of petrol by Rs7.54 per litre, while increasing the rate of high-speed diesel (HSD) by Rs1.48 per litre for the next fortnight.

According to a press release from the Finance Division, the revised price of petrol now stands at Rs264.61 per litre, whereas HSD will be available at Rs285.83 per litre.

The new prices, effective from August 1, were determined after a review of international market trends and on recommendations from the Oil and Gas Regulatory Authority (Ogra) and other relevant ministries.

Petrol, commonly used in motorcycles, rickshaws, and private vehicles, directly affects the budgets of middle- and lower-income households. HSD, which fuels heavy transport, trains, and agricultural machinery, is considered highly inflationary due to its wide impact on the cost of food and essential goods.

Government sources said the revised prices reflect slight easing in international oil prices and a drop in import premiums amid reduced regional tensions.

The premium on petrol imports declined from about $9.70 to $6.75 per barrel over the past fortnight. Earlier estimates had predicted a reduction of around Rs9 per litre in petrol and Rs3.50 in HSD.

Despite no general sales tax (GST) on petroleum products, the government continues to collect approximately Rs98 per litre on both petrol and diesel through various levies. This includes Rs77.01 on diesel and Rs78.02 on petrol and high-octane, with Rs2.25 per litre collected as a climate support levy (CSL). Additionally, customs duties of Rs20-21 per litre apply, regardless of whether the fuel is imported or refined locally.

Distribution and dealer margins account for another Rs17 per litre.

Petrol and HSD remain key revenue streams for the government, with combined monthly sales reaching 700,000 to 800,000 tonnes. The government collected Rs1.161 trillion in petroleum levy during FY2024-25 and aims to boost this to Rs1.470 trillion in the current fiscal year — a projected 27 per cent increase.

Ogra Cuts LPG Prices by Rs17.7 per Kg

In a separate development, the Oil and Gas Regulatory Authority (Ogra) announced a reduction in the price of liquefied petroleum gas (LPG) by Rs17.7 per kilogramme for August.

The maximum consumer price for an 11.8kg LPG cylinder has been set at Rs2,541.36, down from Rs2,750.6 in July. The new per kilogramme price is Rs215.37. This marks the third consecutive month of LPG price reductions, driven by a decline in Saudi Aramco-CP and a more favorable exchange rate.

Ogra said the new prices — applicable from August 1 — will serve as the maximum allowable rate at all levels of the supply chain for both indigenous and imported LPG. The producer price for an 11.8kg cylinder has been fixed at Rs2,054.02.

Earlier this month, a parliamentary panel raised alarm over regulatory lapses in the LPG sector. Officials revealed that out of approximately 2,000 bowsers transporting LPG, nearly half are unregistered. Only 800 are registered with the Department of Explosives, and just 247 hold licences from Ogra, prompting lawmakers to call for urgent regulatory reforms to protect public safety.