ISLAMABAD: The government announced a reduction in the price of high-speed diesel (HSD) while keeping the price of petrol unchanged for the next two weeks, effective until December 31, 2024. This adjustment reflects fluctuations in international oil prices.
According to the Finance Ministry, the Oil and Gas Regulatory Authority (OGRA) calculated the new prices based on recent changes in global market rates.
The ex-depot price of HSD was reduced by Rs3.05 per litre (a 1.18% decrease), bringing it down to Rs255.38 per litre from Rs258.43. This price adjustment applies for the next 16 days. HSD is widely used in the transport sector, particularly in heavy vehicles like trucks, buses, trains, and agricultural machinery. As a result, it has a significant impact on inflation, especially for goods like vegetables and other food items. However, transport fares typically do not decrease when diesel prices are reduced.
The price of petrol remains unchanged at Rs252.10 per litre. Petrol is mainly used in private vehicles, small cars, rickshaws, and motorcycles, affecting the budgets of middle- and lower-middle-class families.
In addition to these adjustments, the government also reduced the price of kerosene oil by Rs3.32 per litre to Rs161.66, and light diesel oil (LDO) saw a decrease of Rs2.78 per litre, now priced at Rs148.95.
Currently, the government imposes approximately Rs76 per litre in taxes on both petrol and HSD. While the General Sales Tax (GST) is set to zero on all petroleum products, a Petroleum Development Levy (PDL) of Rs60 per litre applies to both petrol and diesel, affecting the general population. Additionally, a custom duty of around Rs16 per litre is levied on both petrol and HSD, regardless of whether the products are locally produced or imported.
Oil companies and their dealers also receive around Rs17 per litre in distribution and sales margins. The government further imposes a Rs50 per litre charge on light diesel, high-octane blending components, and 95RON petrol used in luxury vehicles.
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