Pakistan reduces fuel prices for the second time this month

Pakistan's Oil and Gas Regulatory Authority has reduced fuel prices for the second consecutive fortnight.

The authority slashed the price of petrol by PKR 8.47 to PKR 260.96 per liter and high-speed diesel (HSD) by PKR 6.70 to PKR 266.07 per liter. This adjustment brings HSD prices to their lowest level since July 16, 2023, when it was PKR 253.50 per liter.

The price reduction is attributed to a drop in international prices, with average HSD prices falling by 3.5% to $90.3 per barrel, and petrol prices decreasing by 5.5% to an average of $82.4.

At the ex-refinery level, HSD prices have decreased by PKR 6.67 per liter, while the Inland Freight Equalization Margin (IFEM) has slightly increased to PKR 4.44 per liter. The Petroleum Development Levy (PDL) on HSD remains unchanged at PKR 60 per liter.

For petrol, ex-refinery prices have dropped by PKR 8.38 per liter, and the IFEM has marginally decreased to PKR 7.79 per liter. The PDL on petrol also remains steady at PKR 60 per liter.

In fiscal year 2023-2024, the government collected PKR 1,019 billion through the PDL. Its target for FY25 is PKR 1,281 billion. Currently, no sales tax is applied to petroleum products.

The new prices will be effective from August 14-31.