Pakistan keeps fuel prices unchanged; will give relief in electricity bills

The Pakistan government has decided to keep petroleum product prices unchanged for the fortnight against the working of cuts of PKR 10-15 per liter.

Thus, the price of petrol has been maintained at PKR 255.63 per liter and that of diesel at PKR 258.64 per liter.

Prime Minister Shehbaz Sharif announced that while petroleum product prices for the fortnight would remain unchanged, the public would benefit through reduced electricity tariffs.

Before the announcement, calculations from refineries revealed that there was room to cut petrol prices by PKR 14.67per liter and diesel by PKR 10.97 per liter.

The monthly collection of petroleum development levy (PDL) has been PKR 90 billion on average.

With a projected 3% increase in OMC sales in next four months, the total petroleum development collection is expected to reach PKR 1,076 billion compared to the FY25 target of PKR 1,281 billion.

To cut electricity prices, the government might have to raise the PDL from PKR 60 per liter to PKR 70 per liter, which would increase the PDL collection to PKR 1,129 or PKR 94 billion a month.

In a recent meeting with a group of businessmen, the prime minister assured them that the government has been working to decrease the electricity tariff to make Pakistani products more competitive in global market, boost exports, and tame inflation.

PM Sharif has asked the relevant ministry to work on providing relief not just to the industry but also to the common man.