Motorists to Get Relief as Petrol, Diesel Prices Fall Again

"Fuel Prices to Drop for Third Consecutive Fortnight"

Petrol and diesel prices in Pakistan are expected to drop by Rs5-6 per litre for the third consecutive fortnight, starting September 1. This decrease is attributed to lower international market prices and a stronger local currency. The international market prices of petrol and diesel have dropped by $2-2.30 per barrel, leading to a projected decrease in prices.

The current ex-depot prices of petrol and diesel are Rs260.96 and Rs266.07 per litre, respectively. The government reduced petrol and diesel prices by Rs8.47 and Rs6.70 per litre, respectively, in the last pricing review. This brings the total reduction in petrol and diesel prices to Rs14.64 and Rs17.56 per litre, respectively, over the last two fortnights.

The drop in petroleum prices will provide relief to consumers, especially the middle and lower middle classes, who are directly affected by petrol prices. However, it is unlikely that the drop in petroleum prices will be fully reflected in fares and prices of essential commodities. The government has increased the maximum limit of petroleum levy to Rs70 per litre, which will help collect Rs1.28 trillion in the next fiscal year. Currently, the government charges various taxes, including custom duty, sales tax, and petroleum levy, on petrol and diesel.

Hafiz Muhammad Zubair Yaqub