ISLAMABAD – Pakistani government reduced the petroleum levy while increasing the levy on high-speed diesel, amid the latest tweaks in fuel prices.
From June 20, petroleum levy on petrol has been cut by Rs40.49 per litre, bringing it down from Rs106.74 to Rs66.25 per litre. Officials said the move was aimed at providing relief to consumers following a decline in international crude oil prices.
In contrast, the petroleum levy on high-speed diesel has been increased by Rs19.71 per litre. As a result, the levy on diesel has risen from Rs53.26 to Rs72.97 per litre.
| POLs | Old Levy | Change | New Levy |
|---|---|---|---|
| Petrol | 106.74 | -40.49 | 66.25 |
| High-Speed Diesel (HSD) | 53.26 | +19.71 | 72.97 |
The government passed on the impact of lower global oil prices to consumers, resulting in a reduction of around Rs34 per litre in petrol prices.
Officials maintained that the adjustment in levies was made after considering prevailing trends in the international oil market and broader fiscal requirements.
Petroleum product prices could have witnessed a larger reduction had the full impact of lower crude oil prices been transferred to consumers. However, the government opted to reduce the levy on petrol to provide direct relief to motorists.
Fuel prices are determined through a combination of factors, including international oil prices, import costs, exchange rate movements, taxes and petroleum levies. They said changes in crude oil prices do not necessarily translate into equivalent reductions in domestic fuel prices due to the influence of these variables.
The latest revision is expected to benefit petrol consumers, while the increase in the diesel levy may have implications for the transport, agriculture and industrial sectors, which rely heavily on high-speed diesel.
Pakistan slashes petrol price by Rs74, diesel by Rs67 per litre
