Govt Announces Cut in Petrol, Diesel Rates

ISLAMABAD: Federal government announces up to Rs 4.74 per liter reduction in petroleum product prices, effective June 1, 2024.

In a statement issued by the Finance Division, the price of petrol has been reduced by Rs 4.74 per liter and high-speed diesel (HSD) by Rs 3.86 per liter.

The Oil and Gas Regulatory Authority (OGRA) recommended a substantial reduction in fuel prices for the fortnight starting June 1 to 15, 2024.

The import premium on petrol has decreased by about 7 percent in the last two weeks, to $9.70 from $10.30 per barrel. The import premium on HSD remains stable at $6.50 per barrel.

The new ex-depot price of petrol is Rs 268.36 per liter, down from Rs 273.10 per liter in the previous fortnight. Meanwhile, the price of HSD has also declined to Rs 270.22 per liter from Rs 274.08 per liter.

The price of crude oil in the international market dropped by $3.30 per barrel and diesel by $2.15 per barrel in the last two weeks. This comes on top of the $8.7 and $4.3 per barrel reduction in petrol and HSD rates, respectively, implemented in the previous fortnight.

Currently, there is no general sales tax (GST) on petroleum products, the government levies a Petroleum Levy (PL) of Rs 60 per liter on both products. An additional Rs 50 per liter is charged for high-octane blending components and 95RON petrol.

The government has projected to collect Rs 936 billion in PL revenue, exceeding the budgeted amount of Rs 869 billion for the current fiscal year 2024-25.

The government anticipates an improvement in the sale of petroleum products, which during the first ten months of the fiscal year dropped by 11% year-on-year, clocking in at 12.443 million tons.