Recent Fuel Price Reductions Offset by Increased Taxes and Dealer Margins
The caretaker government in Pakistan recently lowered fuel prices significantly to provide relief to the public, with a substantial Rs40 per litre reduction. However, this relief is somewhat offset by an increase in taxes and dealer margins.
Karobar
In a move aimed at providing some relief to the masses, the caretaker government in Pakistan lowered the prices of petroleum products by a substantial Rs40 per litre. However, this apparent relief may be short-lived as the government simultaneously increased taxes and dealer margins, reducing the actual benefit to consumers.
According to official documents, the government raised the levy on high-speed diesel by Rs5 per litre, effectively eroding Rs6 of the price reduction that the public had anticipated. The levy on high-speed diesel now stands at Rs55 per litre, up from the previous Rs50.
Furthermore, the government maintained the levy on petrol at Rs60 per litre while increasing the margin for oil companies by 47 paisas. This margin for oil marketing companies on petrol now stands at Rs7.41 per litre. Additionally, the dealer margin on petrol increased by 41 paisas to reach Rs8.23 per litre.
The recent reduction in fuel prices, initiated by the caretaker government led by Prime Minister Anwaarul Haq Kakar, saw petrol prices drop by Rs40 per litre and high-speed diesel prices by Rs15 per litre for the upcoming fortnight. These price adjustments mean that the new prices are set at Rs283.38 per litre for petrol and Rs303.18 per litre for high-speed diesel. The changes are set to take effect from 12:00 AM on October 16 and will remain in place until October 31.
It's essential to note that this reduction follows a prior decrease by the interim government, which saw petrol prices drop by Rs8 per litre and high-speed diesel by Rs11 per litre for the following fortnight.
