Pakistan cuts petrol prices for the next fortnight

Pakistan's Ministry of Finance announced a reduction in petrol prices by PKR 1.0 per liter for the next two weeks, to reflect fluctuations in the global oil prices.

The new price for petrol is set at PKR 254.63 per liter, while high-speed diesel (HSD) prices remain unchanged at PKR 258.64 per liter.

Petrol, widely used in private transport, small vehicles, rickshaws, and two-wheelers, directly impacts the budgets of middle- and lower-middle-class households.

In contrast, HSD, essential for heavy transport vehicles, trains, and agricultural machinery, is considered a key driver of inflation due to its influence on the cost of goods, including vegetables and other essentials.

Despite a zero general sales tax (GST) on petroleum products, the government imposes a petroleum development levy (PDL) of PKR 70 and customs duty of approximately PKR 16 per liter on both petrol and HSD.

Additionally, oil companies and dealers charge around PKR 17 per liter in distribution and sales margins, further affecting consumer costs.